Once you have selected the market, you will want to spend time understanding the market before opening a position.

Click on the "Details" tab on the top part of the trade page.

You will be able to see key details about a market.

Let's take a look at each field:

  • Tick Size: Each market has a specified tick size. This is the minimum price movement on the market.

  • Step Size: Step size is the smallest factor allowed for order amounts on the market.

  • Minimum Order Size: Minimum order sizes have been significantly reduced due to our transition to Layer 2. Minimum order sizes vary by asset.

Each market has two risk parameters, the initial margin fraction and the maintenance margin fraction, which determine the max leverage available within that market. These are used to calculate the value that must be held by an account in order to open or increase positions (in the case of initial margin) or avoid liquidation (in the case of maintenance margin).

  • Maximum Leverage: Each market has a specified maximum leverage. You cannot make trades that would place your leverage above this limit.

  • Initial Margin Fraction: The initial margin fraction is the margin fraction needed to open a position. Margin Fraction is calculated as your position notional amount divided by your equity. If your margin faction exceeds the initial margin fraction, you will no longer be allowed to increase your position.

  • Maintenance Margin Fraction: The maintenance margin fraction is the margin fraction needed to prevent liquidation. If your Margin Fraction exceeds the Maintenance Margin Fraction, your position will be automatically closed (liquidated) and a liquidation fee will be assessed.

Other Resources:

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