0.2 NVIDIA Trade Walkthrough: From Entry to Exit

A short position on NVDA in the Mochatrade terminal, from opening it to checking the order history.

  • 0.2
  • 4:20

About this lecture

What does a trade look like from opening a position to closing it? Follow an NVIDIA (NVDA) short-position demonstration in the Mochatrade terminal.

Pratham walks through the trading screen, opens a position using leverage and isolated margin, and follows it through to closing and checking the order history.

You'll see:

  1. Market and limit order controls
  2. Bid and ask prices, the spread, order book and depth
  3. Position size, entry price, mark price and liquidation price
  4. Margin, leverage, profit and loss (P&L), and funding fees
  5. Closing a position and reviewing the wallet and order history

Use this lesson as a first look at the full workflow. Later lessons explain the mechanics behind the controls and numbers you see here.

Educational demonstration only. Not investment advice or a recommendation to trade NVIDIA.

MochaLearn is a free A to Z course on understanding and trading US stocks and commodities, built for Indian traders.

Key takeaways

  1. A trade has four stages: open, watch, close, review. The order history is where you review.
  2. A market order takes the price on offer; a limit order waits for yours.
  3. Bid, ask and spread describe the market; entry price, mark price and liquidation price describe your position.
  4. Margin, leverage, P&L and funding fees are the numbers that keep moving while the position is open.

Terms in this lecture

  • Brokerage accountA brokerage account is an account with a registered broker that records the securities you own while a custodian holds…
  • Buying powerBuying power is the position value your free margin can open at the allowed leverage: ₹20,000 at 10x is ₹2,00,000. It…
  • Cost of carryCost of carry is what it costs to hold a position over time: storage, insurance and interest, minus any income. It is…
  • ExpectancyExpectancy is the average result per trade: win rate times average win minus loss rate times average loss, usually…
  • Funding rateThe funding rate is the periodic payment between longs and shorts that keeps a perpetual near the real price: above…
  • Isolated marginIsolated margin ties a fixed amount of margin to one position, so that position can only lose what you gave it and the…
  • Last traded priceThe last traded price is the most recent trade on the venue's own book, the one the chart shows. You never trade at…
  • Leverage in tradingLeverage is controlling a position bigger than the money you put up. At 5x, ₹10,000 of margin controls ₹50,000, so a…
  • Limit orderA limit order buys or sells only at your price or better. You control the price, the market decides whether you trade…
  • Liquidation / forced square-offLiquidation, or forced square-off, is the venue closing a leveraged position because the margin can no longer cover…
  • Liquidation priceThe liquidation price is where the venue closes your leveraged position, computed from entry, leverage and margin…
  • Long and short positionA long position profits when the price rises; a short position profits when it falls. On a contract on the price…
  • Maker and taker feesA maker fee is charged when your order rests on the book and adds liquidity; a taker fee when it fills against a…
  • Margin callA margin call is a broker's demand for more funds when your account falls below the required margin; ignore it and…
  • Margin interestMargin interest is what a US broker charges, daily, on cash it lends you to buy shares. A perpetual contract has no…
  • Margin tradingMargin trading is taking a position larger than your deposit, the margin. A US broker lends you cash at interest; on a…
  • Mark priceThe mark price is the price a venue judges your position by, for unrealised profit and liquidation, built from the…
  • Market orderA market order buys or sells immediately at the best price available. It always fills, but at the ask if you buy and…
  • Notional valueNotional value is the full size of a position, price times quantity, whatever margin backs it: ₹50,000 of exposure on…
  • Open interestOpen interest is the total size of all open positions in a contract, how much money is in the trade. Rising open…

Quiz

  1. The demonstration opens which kind of NVDA position?
  2. What is the spread?
  3. Where do you review a trade once it is closed?