Trade Terminology
Terms you will see across Rage Trade's main trading interface.
Term | Definition |
Account Market Value | The dollar value of your margin + PnL. It is calculated using this formula Account Value = Deposits - Withdrawals + realizedPnL + unrealizedPnL |
Initial Margin Fraction (IMF) | The margin required to open a position (1/5 = 5x leverage) |
Maintanance Margin Fraction (MMF) | The margin required to maintain your open positions (1/10 = 10x leverage) |
Max Leverage | The max leverage with which you can open a position. 1/IMF = 5x. |
Required Maintanance Margin | Minimum collateral required to avoid liquidation. It is calculated as Token Position * Price * MMF |
Required Initial Margin | Minimum collateral required to open new trades and withdraw from margin account. It is calculated as Token Position * Price * IMF |
Free Collateral | Collateral available for withdrawal. It is calculated as Account Value - Required Initial Margin |
Margin Ratio | Monitors the health of your account, if the margin ratio hits 100% then you will be liquidated. It is calculated as the Required Maintanance Margin / Account Value |
