Basic Trading Concepts

A trailing stop is an incredibly powerful instruction that can function both as a Take Profit or Stop Loss order. However, rather than triggering at an exact Stop Loss price, it is instead triggered by a specified amount of loss incurred by the most recent optimal LastPrice. (Read our crypto technical analysis on Effective Exit Trading Strategies to improve trading) This is How the Trailing Stop work: You open a Long position of any given contract with an Entry Price of $1000. You then select the Trailing Stop option and set a Trail Value of $100. What are the potential...

Any order you place with Phemex will have a given value calculated as such: Order value = Contract Quantity x Contract value Contract Quantity is simply the number of contracts you wish to add to your order. Contract Value is calculated differently depending on what type of contract you purchase or sell. The value is always expressed in the units of the settled currency. We offer two types of contracts: Inverse Contracts are those that are quoted in one currency and settled in a different one. The value of inverse contracts is calculated through the following equation:Contract Value = Contract Size/Executed PriceBTCUSD is an example...

PnL stands for profit and loss, and it can be either realized or unrealized. It can be used to describe the change in the value of a trader’s positions. When you have open positions, your PnL is unrealized, meaning it’s still changing in response to market moves. When you close your positions, the unrealized PnL becomes realized PnL. Realized PnL & Unrealized PnL Explained What is a Realized PnL? Realized PnL is calculated using based on your closing price and entry price. Because the realized PnL refers to the profit or loss that originate from closed positions, it has no...

  Each cryptocurrency comes with a different symbol and trading limit. Below are the trading limits for each symbol: Symbol Minimum Price Increment Minimum Order Value Max Order Amount BTC / USDT 0.01 USDT 1 USDT 10 BTC ETH / USDT 0.01 USDT 1 USDT 150 ETH ETH / USDC 0.01 USDC 1 USDC 150 ETH XRP / USDT 0.00001 USDT 1 USDT 500,000 XRP XRP / USDC 0.00001 USDC 1 USDC 500,000 XRP LINK / USDT 0.0001 USDT 1 USDT 30,000 LINK LINK / USDC 0.0001 USDC 1 USDC 30,000 LINK XTZ / USDT 0.0001 USDT 1 USDT 150,000...

A long position (or simply ‘long’) is the act of purchasing an asset in the hopes that its value will rise in the future. An investor holds this asset until they can ideally sell at a profit. How does it apply to Phemex? On Phemex.com, to Buy or Long means to place a purchase order for a predefined number of Perpetual Contracts at a specified price. If the price of your underlying asset increases, you then have the option of purchasing these contracts at your original Entry Price. The difference between the Final Price at the moment you execute your position and...

A short position (or simply ‘short’) is the act of selling an asset with the intention of purchasing it back at a lower price in the future. An investor shorts when they have the expectation that the value of a given asset will drop. The most typical variation of this practice is known as a Covered Short. This is when an investor does not own but instead borrows the target asset for a fee. They then sell the asset, wait for the price to drop, and re-purchase it again to return it to the original owner after having made a...

Limit orders are one of the three types of orders that you can place on Phemex. What are limit orders? Limit orders specify the maximum or minimum price that you are willing to buy or sell at. This order type helps minimize trading costs. However, limit orders do not guarantee execution. There is a chance that your order may not be executed if it is placed far out of the market.

Market orders are one of the three types of orders that you can place on Phemex.com. Market orders are performed immediately at current market prices. A user may prefer this option for urgent orders. We recommend paying attention to the order book when opting for this type of action. It is possible that a large market order may incur market-impact costs.

Conditional orders are one of the three types of orders that you can place on Phemex.com. Conditional orders are automatically submitted once a specified criterion is met. To activate these orders, you must specify a trigger price (TP) based on either the Last Traded Price or the Mark Price. You can further specify whether you want your order to execute with a specific Limit Price or at the Market Price at the moment your trigger price is reached. This type of order is generally used with advanced strategies by experienced traders.

A Stop Loss order allows you to specify a price at which your orders will execute or close when the price is moving against you. This helps you limit the maximum amount of loss you are willing to experience. Therefore, Stop Loss Orders allows you to specify trigger price but the order will be executed in the market. We recommend this type of order for two main strategies: As a risk-management tool to limit losses on existing positions. As an automatic tool to enter the market at the desired entry point without manually waiting for the market to place the...