Selecting a market on dYdX Chain

Selecting a market on dYdX Chain

Roselynn Chang avatar
Written by Roselynn Chang
Updated over a week ago

What does selecting a market look like on dYdX Chain?

As part of the default settings of the v4 open source software (”dYdX Chain”), dYdX Chain supports Perpetuals for BTC-USD, ETH-USD, and many more pairs. Traders have the option to see the full list of markets that are available by navigating to the “Market” tab at the top of their screen.

As part of the default settings of the v4 open source software, traders have the option to start trading a market by navigating to the “Trade” tab. To select a market, traders can click on “All markets” in the left panel.

Traders will then see a list of all current markets available by default. Traders can select the market they want to open a position on.

  • Traders can also search for a market in the search bar or click on the pre-filters to search for “Layer 1” or “DeFi” markets

Once a market is selected, traders have the option to view the linked resources by default to better understand the market before opening a position.

  • Whitepaper

  • Website

  • CoinMarketCap

As part of the default settings on the v4 open source software, traders can also click on the "Details" tab on the top part of the trade page.

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

  • 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 vary by asset.

As part of the default settings on the v4 open source software, each market has two risk parameters, the initial margin fraction and the maintenance margin fraction, which determine the max leverage available within that market. By default, 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. A trader cannot make a trade that would place their leverage above this limit. To limit risk, maximum leverage decreases linearly with position size after a certain threshold.

  • Maintenance Margin Fraction: Margin fraction is calculated as a trader’s position notional value divided by equity. If a trader’s margin fraction exceeds the maintenance margin fraction, their position will be automatically closed (liquidated) and a liquidation fee of at least 1% will be assessed (may be higher depending on liquidity at the time of liquidation).

  • Base Initial Margin Fraction: Margin fraction is calculated as a trader’s position notional value divided by equity. If a trader’s margin fraction exceeds the initial margin fraction, a trader will no longer be allowed to increase their position. To limit risk, the initial margin fraction increases by the square root of position size divided by Base Positional Notional multiplied by Base Initial Margin Fraction.

  • Base Position Notional: The maximum position size at which the margin requirements are not increased.

Disclaimer and Terms

This document may provide information with respect to the default settings of dYdX Trading Inc. (”dYdX”) v4 software, or non-mandatory guidelines and suggestions that may help with using v4 software. CoinMarketCap is independent from and unaffiliated with dYdX, and dYdX is not responsible for any action taken by CoinMarketCap or any other third parties, including content set forth on any third-party websites, such as any links to such content in this document. dYdX does not deploy or run v4 software for public use, or operate or control any dYdX Chain infrastructure. dYdX is not responsible for any actions taken by other third parties who use v4 software. dYdX services and products are not available to persons or entities who reside in, are located in, are incorporated in, or have registered offices in the United States or Canada, or Restricted Persons (as defined in the dYdX Terms of Use). The content provided herein does not constitute, and should not be considered, or relied upon as, financial advice, legal advice, tax advice, investment advice or advice of any other nature, and you agree that you are responsible to conduct independent research, perform due diligence and engage a professional advisor prior to taking any financial, tax, legal or investment action related to the foregoing content. The information contained herein, and any use of v4 software, are subject to the v4 Terms of Use.

Did this answer your question?