What does selecting a market look like on the v4 software?
As part of the default settings of the v4 open source software (”dYdX Chain”), dYdX Chain supports Perpetuals for BTC-USD, ETH-USD, and many more pairs. Traders can see the full list of available markets by navigating to the “Market” tab at the top of their screen.
As part of the default settings of the v4 open source software, traders have the option to start trading a market by navigating to the “Trade” tab. To select a market, traders can click on “All markets” in the left panel.
By default, traders see a list of all current markets available. They can then select the market on which they want to open a position.
Traders can also search for a market in the search bar or click on the pre-filters to search for “Layer 1” or “DeFi” markets
Once a market is selected, traders have the option to view the linked resources by default to better understand the market before opening a position.
Whitepaper
Website
CoinMarketCap
As part of the default settings on the v4 open source software, traders can also click on the "Details" tab on the top of the trade page.
Traders will be able to see key details about a market.
Tick Size: Each market has a specified tick size. This is the minimum price movement on the market.
Step Size: Step size is the smallest factor allowed for order amounts on the market.
Minimum Order Size: Minimum order sizes vary by asset.
As part of the default settings on the v4 open source software, each market has two risk parameters, the initial margin fraction and the maintenance margin fraction, which determine the max leverage available within that market. By default, these are used to calculate the value that must be held by an account in order to open or increase positions (in the case of initial margin) or avoid liquidation (in the case of maintenance margin).
Maximum Leverage: Each market has a specified maximum leverage. A trader cannot make a trade that would place their leverage above this limit. To limit risk, maximum leverage decreases linearly with position size after a certain threshold.
Maintenance Margin Fraction: Margin fraction is calculated as a trader’s position notional value divided by equity. If a trader’s margin fraction exceeds the maintenance margin fraction, their position will be automatically closed (liquidated) and a liquidation fee of at least 1% will be assessed (may be higher depending on liquidity at the time of liquidation).
Base Initial Margin Fraction: Margin fraction is calculated as a trader’s position notional value divided by equity. If a trader’s margin fraction exceeds the initial margin fraction, a trader will no longer be allowed to increase their position. To limit risk, the initial margin fraction increases by the square root of position size divided by Base Positional Notional multiplied by Base Initial Margin Fraction.
Base Position Notional: The maximum position size at which the margin requirements are not increased.
Disclaimer and Terms
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