Glossary
Introduction
This glossary explains the various terms related to derivative trading that are used throughout Demex.
Please also check the Market Specifications descriptions of terms related to market parameters (which can be found in the Market Details panel).
Index Price
Learn more here.
Mark Price
The mark price of a market refers to the price used as the fair value of a contract or position. This price is used to gauge when a position should be liquidated, and is also used to calculate estimated unrealized PnL on Demex.
The mark price of any market is designed to be fair and manipulation resistant. Learn more here.
Last Price
The last price of a market refers to the the most execution price of the most recent trade for the market on Demex.
Settlement Price
The settlement price refers to the settlement value of a dated futures contract at its expiry.
The settlement price is the Time Weighted Average Price (TWAP) of the Index Price over the 30 minutes leading up to the contract's expiry.
The settlement price is used to calculate PnL and settle all positions at the time of expiry. Learn more here.
Funding Rate
Funding rate is a mechanism to keep the price of perpetual contracts as close to the index price as possible.
When the funding rate is negative, short positions pay long positions, and when the funding rate is positive, long positions pay short positions. This happens every 1 hour on Demex.
Learn more about funding rate here.
Funding Amount
The funding amount refers to the payment amount exchanged between long and short positions in perpetual contracts.
Funding Amount = Position size * Funding Rate
There are no fees applied on the Funding Amount.
Wallet Balance
Wallet balance refers to the total amount of funds available in a user's wallet.
Unrealized Profit and Loss
The unrealized profit and loss (uPnL) refers to the potential profit or loss on an open position that has not been realized through closing the position.
For long positions, this is:
[(1/Entry Price) - (1/Mark Price)] * Position Size
For short positions, this is:
[(1/Mark Price) - (1/Entry Price)] * Position Size
Position Margin
Position margin refers to the value of collateral that is backing an open position.
Order Margin
Order margin refers to the margin required to place an order.
Margin Balance
Margin balance represents the funds in your wallet that are available for you to use when placing new orders.
Your margin balance is given by:
Wallet Balance - Position Margin - Order Margin
Liquidation Fees
Liquidation fees refer to the fees imposed when a position is forcibly closed due to having insufficient maintenance margin. There are no liquidation fees on Demex.
When a liquidation occurs, any remaining margin is sent to the Insurance Fund.
Learn more about how liquidation works here.
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