> For the complete documentation index, see [llms.txt](https://docs.chainbitx.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.chainbitx.com/help-center/eng/readme/faqs-for-beginners/beginners-class-contract-glossary.md).

# Beginner’s Class: Contract Glossary

**A**

**API**\
Application Programming Interface, a software medium that allows two programs (e.g., ChainBitX and a trading bot) to communicate with each other.

***

**B**

**BTCUSD**\
Bitcoin coin-margined contract.

**Coin-Margined Contract**\
Contracts based on BTC/ETH/EOS/XRP as the base currency. Traders confirm the contract quantity traded in USD (quote currency), then calculate margin and P\&L using the base currency (e.g., BTC, ETH).

**BTCUSDT**\
USDT perpetual contract.

**Margin**\
An insurance fund pool used to cover losses from negative balances, reducing the possibility of auto deleveraging on the platform. Margin = Position value / Leverage.

**Margin Ratio**\
Measures the risk level of a user’s position. When it reaches 100%, auto deleveraging or liquidation occurs. Margin Ratio = Maintenance Margin of current position / (Account equity – isolated margin frozen – isolated unrealized P\&L – isolated position margin).

**Quote Currency**\
Part of the perpetual contract pricing mechanism (quote currency and base currency), mainly USD, used to determine order size and position quantity.

**Mark Price**\
The global spot index price plus a decreasing funding basis rate.

**Mark Price Expected Liquidation Price Distance (Spread)**\
The maximum price difference between the expected liquidation price of an order and the current mark price. This allows traders to review the spread before confirming orders to assess immediate liquidation risk.

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**C**

**Average Position Price**\
The average price of a position, possibly resulting from multiple trades.

**Position Margin**\
Initial margin of the position + closing fees.

**Position Take Profit / Stop Loss**\
Applies to the entire position (existing plus subsequent increases or decreases). When the latest market transaction price / reasonable mark price reaches the trigger price, the set quantity for that position will be placed as an order at the best execution price. Once fully closed, the TP/SL order disappears automatically.

**Trigger Price**\
The pre-set price condition on the platform used to activate conditional orders and take profit/stop loss orders.

**Close After Trigger**\
An additional option for conditional orders guaranteeing the execution of the close order regardless of margin requirements.

**Cost Price**\
Margin for opening a position.

**Average Execution Price**\
The average price of a position.

**Trade Volume**\
The quantity traded.

**Trade Details**\
All your executed order details, including average execution price, trade volume, and time.

***

**D**

**Current Orders**\
All active orders.

**Realized P\&L Today**\
All profit and loss realized from 00:00 to 24:00 (Beijing Time 08:00 to next day 08:00), including transaction fees and funding fees paid or received.

**Decreasing Funding Basis Rate**\
Defined as the funding rate multiplied by the time interval until funding settlement. Used to gradually narrow the gap between mark price and index price.

**Order Execution Strategy**\
Defines the validity period and execution method of orders, allowing advanced traders to adjust order execution rules based on their strategy.

***

**E**

**ETHUSD**\
ETH coin-margined contract.

**EOSUSD**\
EOS coin-margined contract.

**24H Volume**\
Contract quantity traded in the past 24 hours.

**24H High Price**\
Highest market price in the past 24 hours.

**24H Low Price**\
Lowest market price in the past 24 hours.

***

**F**

**Reverse Position**\
Open a position in the opposite direction with the same quantity.

**Reverse Explanation**\
Your position will be closed at market price and reversed with the same quantity. If funds are insufficient, open the maximum possible quantity. Execution is not guaranteed 100% due to margin and market conditions.

**Risk Limit**\
A risk management method limiting risk exposure for traders.

**FOK (Fill or Kill)**\
Order must be fully executed immediately or fully canceled.

***

**H**

**Contract Value**\
Position value relative to the order execution price.

**Contract Quantity**\
Unit of order and position size measurement on  ChainBitX.

**Return Rate**\
Net asset return rate, shown as a percentage relative to initial margin P\&L.

***

**J**

**Trigger Order**\
An order that activates when price reaches a trigger price, sending an order to the market at set quantity, price, and method. Assets are not frozen before triggering. Execution not guaranteed due to price, position, or tier limits.

**Trading Fees**\
Fees paid or received on completed orders.

**Net Loss**\
Final profit or loss after all fees.

***

**K**

**Open Price**\
Average open price of your position, visible in your realized P\&L.

**Open Fee**\
Fee reserved for estimated opening fee.

**Long/Short TP/SL**\
Pre-set take profit/stop loss are not actual orders and require execution before activation. After order execution, TP/SL orders are placed for your actual executed quantity. Canceling the order invalidates the pre-set TP/SL.

**Available Balance**\
Funds available to open positions, including unrealized P\&L in cross margin but excluding isolated margin unrealized P\&L. Available = Account equity – used margin – isolated unrealized P\&L.

***

**L**

**IOC (Immediate or Cancel)**\
Order execution strategy requiring immediate execution at limit price or better; unfilled parts are canceled.

***

**M**

**Buy Price**\
The price a trader is willing to pay to buy a contract for a specific quantity.

**Buy Long**\
Open a bullish position (profit when price rises).

**Sell Price**\
The price a trader is willing to accept to sell a contract for a specific quantity.

**Sell Short**\
Open a bearish position (profit when price falls).

**Notional Value**\
Floating contract value of a position based on current mark price.

**Target Price**\
Estimated closing price calculated based on desired return rate.

***

**P**

**Close Price**\
Average closing price of your position, shown in realized P\&L.

**Close Fee**\
Fee reserved for estimated closing fee.

**Close P\&L**\
Net profit or loss of a position including all fees.

**Average Open Price**\
Average price calculated from multiple opening orders.

***

**Q**

**Initial Margin**\
Margin required to open a leveraged position.

**Forced Liquidation**\
Triggered when position margin cannot meet maintenance margin requirements, causing total loss of collateral. Activated when mark price reaches liquidation price.

**Cross Margin Mode**\
Uses all available account balance as margin for the position.

***

**S**

**Market Depth**\
The ability of the order book to absorb large market orders without significantly affecting the price.

**Market Close**\
Market close order with close after trigger.

**Market Order**\
Order executed immediately at the best available market price.

**Market Price Order**\
System places orders at prices most likely to execute; if not fully executed, reorders at the latest likely execution price.

**Lightning Close**\
System places orders at prices easiest to execute; if not fully executed, continues reordering at latest execution price. If chasing price hits estimated liquidation price, closes are stopped and liquidation strategy executes.

***

**T**

**Trial Fund**\
Funds users can trade or invest with but cannot withdraw or transfer (not real assets).

**Conditional Order**\
Advanced order automatically submitted and executed when selected reference price (market, mark, index) reaches trigger price.

***

**U**

**UID**\
Unique account identification number.

***

**W**

**FOK (Fill or Kill)**\
Order execution strategy requiring full immediate execution at limit price or better, otherwise fully canceled; partial fills not allowed.

**Maintenance Margin**\
Minimum margin required to maintain a position, adjusted based on trader’s risk limit.

**Maintenance Margin Rate**\
Value corresponding to position tier; if margin rate drops below this, forced deleveraging or liquidation occurs.

**Order Margin**\
Total margin of all active pending orders.

**Order Cost**\
Includes initial margin + open fee + close fee.

**Order Price**\
Price manually set by trader when placing a limit order.

**Order History**\
Record of all successfully placed orders on the platform.

**Unrealized P\&L**\
Estimated position profit/loss based on current market price, excluding fees and funding costs.

**Open Contract Quantity**\
Total number of open perpetual contracts held on the platform.

***

**X**

**XRPUSD**\
XRP coin-margined contract.

**Limit Close**\
Limit close order with close after trigger.

**Limit Order**\
Limit orders are placed at specific prices in the order book. They execute only when the market price reaches or exceeds the limit price. Limit orders allow buying at lower or selling at higher than current market price. Unlike market orders, they don’t execute immediately but wait in the order book.

***

**Y**

**Premium Index**\
A floating variable used to adjust the next funding rate to align with current contract trading levels.

**GTC (Good Till Cancelled)**\
Order execution strategy keeping the order valid until fully filled or manually cancelled.

**Estimated (Liquidation) Deleveraging Price**\
Estimated price triggering deleveraging/liquidation, calculated based on position margin ratio. For reference only, not actual liquidation price.

**Realized P\&L**\
Profit/loss from closed positions including fees, not yet settled in account balance.

**Trailing Take Profit / Stop Loss**\
When market retraces, the set order is sent to market. When price/mark price reaches the highest/lowest (1± retracement rate), the order is placed at best market price.

***

**Z**

**Close-Only**\
An additional limit order option that ensures the order only reduces position size.

**Index Price**\
Weighted average price derived from multiple spot platforms.

**Stop Loss**\
Order to limit loss on current position; can be set via one-click TP/SL function.

**Take Profit**\
Order to close position when profitable; can be set via one-click TP/SL function.

**Isolated Margin Mode**\
Portion of margin allocated to a single position separately from the rest of the account.

**Trailing Stop Loss**\
Stop loss order that dynamically follows the latest market price based on preset distance, locking in profit or loss.

**Funding Rate**\
Rate used to calculate funding payments exchanged directly between buyers and sellers every 8 hours at 0:00, 8:00, and 16:00 (UTC+8).

**Funding Fee**\
Mechanism ensuring the latest market price stays anchored to global spot price.

**Auto Deleveraging**\
Mechanism to cover negative balances when insurance fund cannot fully cover losses.

**Auto Margin Top-Up**\
System automatically tops up margin from available balance when mark price approaches liquidation price.

**Latest Market Price (Mark Price)**\
Current market price on the platform.

**Trailing Order**\
A type of stop loss order where the set order is triggered after price retracement by a certain amount, then executed at market price.

**Isolated Margin**\
Margin allocated specifically to a position; if margin falls below maintenance margin, the position will be liquidated. You can add or reduce margin in this mode.

**Max Order Quantity**\
Maximum quantity allowed per order (usually not specially set).

**Min Order Quantity**\
Minimum quantity allowed per order.

**Maker Only**\
Order does not execute immediately, ensuring user is always a maker. If order would match immediately, it is canceled.

**Account Equity**\
Total assets in a hybrid contract account. Account Equity = Deposits + Realized P\&L + Unrealized P\&L. Includes trial funds.