Unrealized P&L: The unrealized P&L is based on the difference between the average entry and oracle prices. It is a reference P&L of a position.
Realized P&L: This is based on the difference between a position's entry and close prices. Trading Fees and Funding Fees are also included in the realized P&L.
Liquidation: To keep the positions open, traders are required to hold a percentage of the value of their position, i.e., the maintenance margin percentage. If a trader fails to fulfill the maintenance requirement, their position will be flagged for liquidation, and any margin will be lost.
Initial margin: Is the percentage of the purchase price of a future position that must be covered by cash or collateral when leverage trading.
Maintenance Margin: This is the percentage of the purchase price of a future position that must be covered by cash or collateral when leverage trading.
Leverage: Leverage refers to using borrowed capital to make trades. Leverage trading applies a multiplier to your buying or selling power, allowing you to trade more significant amounts.
Funding Rate: Funding rates are periodic payments to or from traders depending on their trade direction. Kwenta uses these rates to balance the skew of the Open Interest, be aware of these rates because they impact the daily holding cost of a perpetual contract position.
Open Interest: Open interest is the total number of outstanding derivative contracts, futures that have not been settled.
Volume: Volume is the total notional value being traded between market participants.
Notional Position Size: The notional value is the total amount of an asset's underlying value at its spot price. The notional value distinguishes between the amount of money invested and the amount of money associated with the whole position. The notional value is calculated by multiplying the units in one contract by the spot price.