Order Types & Risk Management
Order Types:
Market – Execute instantly at best available price.
Limit – Add liquidity at your preferred price.
IOC (Immediate or Cancel) – Execute as much as possible immediately, cancel the rest.
FOK (Fill or Kill) – Must execute fully at the limit price or not at all.
Post Only – Guarantees maker status, avoids taker fees.
Reduce Only – Ensure orders only reduce your open position.
Risk Management:
Initial Margin: Collateral required to open a position.
Maintenance Margin: Minimum collateral to keep a position open.
Funding Fee: Periodic long/short payments to keep contracts near index price.
Insurance Fund: Buffer against extreme liquidations.
Auto-Deleveraging (ADL): Last-resort safety net during high volatility.
Last updated