ApeX
    Trade

    ApeX Trading Guide

    Master perpetual futures trading with order types, leverage mechanics, and risk management

    Order Types

    Understanding Leverage

    How Leverage Works

    Leverage allows you to control a larger position with less capital. ApeX offers up to 100x leverage on perpetual futures. Here's what that means in practice:

    Position Size
    $10,000
    Leverage
    10x
    Required Margin
    $1,000

    Example Scenarios:

    +5% Price Move: Your $10,000 position gains $500, which is a +50% return on your $1,000 margin (10x leverage)
    -5% Price Move: Your $10,000 position loses $500, which is a -50% loss on your $1,000 margin (10x leverage)
    -10% Price Move: Your $1,000 margin is wiped out and your position is liquidated
    Initial vs Maintenance Margin
    Initial Margin: The collateral required to open a position (e.g., 1% for 100x leverage = $100 for $10,000 position)
    Maintenance Margin: The minimum collateral required to keep a position open (typically 0.5% for 100x). If equity falls below this, liquidation occurs.
    Liquidation Thresholds
    100x leverage:~1% price move
    50x leverage:~2% price move
    20x leverage:~5% price move
    10x leverage:~10% price move
    5x leverage:~20% price move

    Funding Rates

    How Funding Rates Work

    Funding rates are periodic payments between long and short traders that keep perpetual contract prices aligned with spot prices. On ApeX, funding is paid every 8 hours at 00:00, 08:00, and 16:00 UTC.

    Positive Funding Rate

    Perpetual price > Spot price

    • ✓ Longs pay shorts
    • ✓ Short positions earn funding
    • ✓ Common in bull markets
    Negative Funding Rate

    Perpetual price < Spot price

    • ✓ Shorts pay longs
    • ✓ Long positions earn funding
    • ✓ Common in bear markets
    Important: Always check the current funding rate before opening positions, especially if you plan to hold across multiple funding intervals. High funding rates can significantly impact profitability. View real-time rates on the ApeX Stats Page.

    Liquidation Mechanics

    What Triggers Liquidation?

    Liquidation occurs when your margin ratio falls below the maintenance margin requirement. The automated liquidation engine closes your position to prevent further losses and protect the insurance fund.

    Partial Liquidation:

    Only a portion of your position is closed to bring your margin ratio back above the maintenance requirement. This gives you a chance to add more margin or close positions manually.

    Full Liquidation:

    Your entire position is closed if partial liquidation isn't sufficient or if the market moves too quickly. You lose your initial margin minus any remaining maintenance margin after fees.

    Liquidation Avoidance Strategies

    Proactive Measures
    • Use lower leverage (2-10x for beginners)
    • Maintain 30-50% margin buffer
    • Set stop-loss orders on all positions
    • Monitor positions during volatile events
    • Add margin before it's critical
    Emergency Actions
    • Add more collateral immediately
    • Close partial positions to free margin
    • Reduce leverage on open positions
    • Hedge with opposite position
    • Exit before reaching liquidation price

    Risk Management Strategies

    Position Sizing
    The 1-2% Rule: Never risk more than 1-2% of your total account on a single trade. If you have $10,000, your maximum loss per trade should be $100-200.
    Calculate Position Size: Determine your stop-loss distance, then work backwards to calculate position size. If your stop is 5% away and you want to risk $100, your position size should be $2,000.
    Stop-Loss Strategies
    Fixed Percentage: Set stops at a fixed % below entry (e.g., 3-5% for swing trades)
    Technical Levels: Place stops below support (longs) or above resistance (shorts)
    Trailing Stops: Move stops up with price to lock in profits as position moves in your favor
    Time-Based: Exit positions after a set time period regardless of P&L
    Portfolio Diversification
    Asset Diversification: Don't concentrate risk in one asset. Spread across different crypto sectors (DeFi, L1s, L2s, etc.)
    Direction Diversification: Consider both long and short positions to hedge market risk
    Timeframe Diversification: Mix scalping, day trading, and swing trading strategies

    Dollar-Cost Averaging (DCA)

    For longer-term positions, consider scaling into positions gradually rather than entering all at once. This reduces the impact of poor timing and averages your entry price.

    Example: Instead of buying $1,000 of BTC perpetuals at once, buy $250 each week for 4 weeks. This averages out volatility and reduces psychological pressure.

    Frequently Asked Questions

    Related Guides

    How ApeX Works

    Understand the protocol architecture and settlement mechanics

    APEX Token

    Understand the role of APEX in the protocol ecosystem

    Security Guide

    Best practices for secure self-custody trading

    Disclosure & Disclaimer

    No affiliation

    whatisapex.com is not affiliated with, endorsed by, or sponsored by ApeX Omni Protocol, APEX or ApeX DAO, or any other centralized or decentralized exchange, protocol, or company. ApeX Omni Protocol is an independent decentralized exchange protocol.

    Educational use only

    All content on this website is for educational and entertainment purposes only. Nothing here constitutes financial, investment, trading, accounting, tax, or legal advice.

    High-risk warning

    Perpetual futures are highly speculative and may result in substantial or total loss of capital. Leverage amplifies gains and losses. Trade only with money you can afford to lose. Always do your own research and consider seeking advice from a qualified professional.

    Affiliate disclosure

    whatisapex.com may earn a commission if you click a referral link and open or use an account on a third-party platform. This does not change your price and does not influence our educational content or recommendations.

    User responsibility

    By using this website and any linked platforms, you acknowledge these risks and agree that you trade at your own discretion and responsibility.