6. Market & Index Price - basic knowledge ✍️
📈 Market Price (MP) is formed by traders' positions, i.e. if one trader opens long at 100 and the other trader opens short at 200, the MP will move to the short side.
📈 Index Price (IP) is formed by movements on the global market.
7. Open Interest (OI) - upper knowledge ✍️
📊 Open interest is the total number of outstanding derivative contracts for an asset that haven't been settled.
🧐 Sometimes OI isn't enough to open positions, you just have to wait for traders to close positions. Here funding helps.
8. Funding - upper knowledge ✍️
🧮 Funding is the payout that is paid by the party who has more open interest at the time. Funding allows to stimulate traders to open positions in the opposite direction.
9. Stop-Loss & Take-Profit - upper knowledge ✍️
📉 Stop-Loss (SL) level is a preset price of an asset, set below the current IP, at which a position gets closed to limit investor’s losses.
📈 Take-Profit (TP) level is a preset price at which traders close profitable positions.
10. Price Impact - upper knowledge ✍️
🧰 Price Impact shows the percentage by which your open position affects the current Market Price.
We can talk endlessly about market terms and understand them in more detail, because we learn throughout our lives. We hope that our little glossary will help you pave the way to becoming a trader and clarify some points. Have a nice trade! ⚡️