📑Funding Rates and Markets

Details of the Price, Order book, Funding Rate, and Market


Price or the Trading view chart shows real-time price charts with technical indicators and shows the last traded price of a market.

The chart has tools to plot indicators, switch chart types, and configure settings like symbols, and scales.

Order Book

An order book is a digital list of buy and sell orders for security, organized by price level. It usually has three sections: purchase orders, sell orders, and order history/trades.

  • Buy orders show bids and the amount buyers want to purchase.

  • Sell orders show offers and the prices sellers wish to sell at.

Funding Rate

  1. Funding rates are payments to traders, either long or short, based on the difference between mark and market prices. These payments are based on open positions.

  2. At ZKX, the funding rate is settled every 8 hours. Funding interest varies as per the price fluctuations in the market.

  3. A positive funding rate results in long traders paying short traders when the perpetual contract is priced higher than the mark price.

  4. Conversely, a negative funding rate means short traders pay long traders when the perpetual contract is priced lower than the mark price.

Market Details

Click on the "Details" tab on the top part of the trade page, and you will be able to see key details about a market.

Let's take a look at each field:

  • Tick size is the Minimum price change allowed in a market

  • Step size is the Smallest amount by which an order can be increased or decreased

  • Minimum order size is the Smallest amount of an asset that can be traded on the market; reduced due to the transition to Layer 2 and varies by asset

In each market, there are two risk parameters: Initial margin fraction and Maintenance margin fraction. They decide the highest leverage allowed in that market. These parameters determine the minimum value that an account must hold to open or increase positions (initial margin) or prevent liquidation (in case of maintenance margin)

  1. Maximum leverage is the Highest leverage allowed in a market.

  2. Initial Margin Fraction is the Margin needed to open a position, calculated as the position amount divided by equity; exceeding it prohibits increasing the position.

  3. Maintenance Margin Fraction is the Margin needed to avoid liquidation; exceeding it leads to the automatic closure of position (liquidated) and a liquidation fee.

Last updated