Trading dated futures comes with its own set of terms and concepts. If you're new to the space, understanding this vocabulary is key to feeling confident and in control while trading. Below, we've compiled a list of essential terms, explained in a clear and beginner-friendly way.
The amount of collateral required to open or maintain a position. There are two common types:
- Initial margin — minimum amount of collateral needed to enter into a position.
- Margin threshold / maintenance margin — minimum amount of collateral required to keep an open position from being liquidated.
- Going long — you want to gain exposure to the increase in price of the underlying asset and buy the contract.
- Going short — you want to gain exposure to the decrease in price of the underlying asset and sell the contract.
The result of your trade.
- Unrealised PnL — gains or losses while your position is still open.
- Realised PnL — final profit or loss after you close the position.
We offer the following order types (please refer to the ONEX Rulebook for definitions):
- Market order
- Limit order
- Move order
- Stop order
- Maker — adds liquidity by placing limit orders that don't fill immediately.
- Taker — removes liquidity by placing orders that get filled immediately.
- Fees are usually lower for makers than takers.
Getting comfortable with these terms is a great first step in your trading journey. The more you understand, the better equipped you'll be to manage your risk, make informed decisions, and use One Trading's platform effectively.
Investing involves risks. The value of investments can go up as well as down and you may receive back less than your original investment or lose your entire investment. Investing with leverage means the value of your investment fluctuates more than the price of the underlying asset. One Trading does not provide investment advice and investors should make their own decisions or seek independent advice.