Trading Features

1️⃣ Position Management Modes

Effective position management is essential for maximizing profits and minimizing risk. AZEx offers two flexible margin modes to suit a variety of trading strategies:

• Isolated Margin: Each position is assigned a separate margin, which allows for better risk control by ensuring that losses in one position do not affect others. This is ideal for high-risk, short-term trading where traders want to limit the risk of each individual position while maintaining flexibility.

  • Benefits:

    • Isolate risk per position

    • More control over individual trades

    • Suitable for quick, high-risk strategies like day trading or scalping

• Cross Margin: All positions share a single margin pool, meaning that profits from one position can offset losses in another. This mode is best for hedging strategies and long-term positions, where a more comprehensive view of the portfolio is needed to reduce risk over time.

  • Benefits:

    • Unified margin pool across all positions

    • Ideal for portfolio management and long-term holding strategies

    • Can be used to hedge risk across different assets or positions

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2️⃣ Smart Price Aggregation

Pricing accuracy is crucial in the DeFi world, especially when dealing with volatile assets. AZEx integrates advanced Smart Price Aggregation to ensure the best pricing for users while maintaining fairness and transparency:

• Off-Chain Price Data: Prices are aggregated from multiple off-chain data sources, such as liquidity pools and other exchanges. This allows AZEx to offer more accurate pricing by taking a broad range of market data into account.

• Oracle Verification: To prevent price manipulation and ensure reliability, prices are verified by trusted oracles, such as Pyth, ensuring that the values reflect the real market conditions. The oracles ensure that prices are consistent with the underlying market data and prevent sudden price discrepancies from affecting trades.

• Index Prices within Defined Volatility Range: AZEx uses index prices to determine the market value within a defined volatility range, ensuring that pricing remains consistent even during periods of high market fluctuation. If the price moves outside of this predefined range, the platform automatically switches to oracle-provided values for enhanced accuracy and to avoid any significant market discrepancies.

• Benefits:

  • Higher price accuracy by aggregating data from multiple sources

  • Reduced slippage and front-running by leveraging verified oracle data

  • Improved market fairness, as price adjustments are made with accurate, real-time information

With these features, AZEx ensures robust risk management and price transparency, empowering traders to make informed decisions in both stable and volatile market conditions.