Must-Read for Beginners: Futures Trading Terminology and Scenarios.

"Long" refers to when a user anticipates a price increase in the future market. They start by buying contracts and later sell them at a higher price to earn a profit. In CoinCatch, users click on 'Buy long' to initiate a long position.

"Short" refers to when a user anticipates a future price decline. They start by selling contracts and later buy them back at a lower price to profit. In CoinCatch contracts, users click on 'Sell short' to initiate a short position.

The initial margin refers to the minimum amount of collateral required in a user's account to open a futures contract position.

The maintenance margin is the minimum amount of collateral required for a user to continue holding a position. It can increase or decrease based on the risk limits chosen by the user.

Mark Price is determined by the Index Price and the upcoming funding rate, reflecting the current fair value of the contract. Mark Price is also used to calculate unrealized profit and loss of positions and liquidation triggers.

Index Price is derived from the weighted average of prices provided by several spot platforms, weighted by their respective volumes.

Last Price refers to the most recent transaction price of the contract.

Isolated Margin allows users to hold separate long and short positions, each with its own margin. If a position's margin drops below maintenance levels, only that position is at risk of liquidation, limiting potential losses to its margin. Users can adjust margins for individual positions.

Cross Margin uses the entire account balance to support all positions. If liquidation occurs, losses can extend across all positions using the same asset. This method uses all available funds to prevent liquidation.

A limit order is placed at a user-defined price on the order book and executes only when the market reaches or exceeds that price. It allows buying at lower or selling at higher prices than the current market value. Unlike market orders, which execute immediately at the current price, limit orders wait on the order book

A market order executes at the best available price in the market. If not fully filled, it continues to seek the next best available price.

Realized Profit/Loss refers to the profit or loss generated from closed positions and transaction fees, which have not yet been included in the account balance through settlement calculations.

Unrealized Profit/Loss is the estimated profit or loss of current positions based on the current market price, excluding transaction fees and funding costs.

Closing: Closing involves buying or selling contracts that are identical in type, quantity, and delivery month as the current holdings but in the opposite direction, effectively settling the contract position.

Liquidation: Force liquidation happens when a position's margin drops below the minimum maintenance requirement, leading to the loss of all collateral. It triggers when the mark price reaches the position's liquidation price.