🚀How to trade Perpetual Futures
Last updated
Last updated
Open a position
Click on either "Long" or "Short" to select the type of leveraged position you wish to open. A long position will profit if the token's price increases and incur a loss if the price decreases. A short position works the opposite way, profiting if the token's price decreases and incurring a loss if it increases.
Once you have chosen your position type, enter the amount you want to invest and the leverage you want to apply. For example, 0.1 ETH (worth 186 USD) could be used to purchase a 1.1x-30x leveraged ETH long position valued from 204 to 5580 USD.
The "Entry Price" will be displayed, which is the current market price of the token. Also, the "Liquidation Price" will be shown, which is the price at which your position will automatically close to prevent further losses. The "Exit Price", is the price that would be used to calculate profits if you open and immediately close a position. The exit price will change with the price of the token you are longing or shorting.
Note that there is a position fee of 0.1% of the position size for opening and closing a long position, 0.1% for short position.
Be aware of the "Funding Fee". This fee is deducted hourly and paid to the counterparty of your trade. The fee is currently locked at 0.0015%/ 1h.
Opening a short position using a stable-coin will not incur a swap fee of 0.1%.
While there are no price impacts for trades, slippage may occur due to price movements between when your trade is submitted and when it is confirmed on the blockchain. Slippage refers to the difference between the expected price of the trade and the execution price. The available liquidity indicates the size of the slippage. You could instead use limit orders in order to avoid slippage.
After opening a position, you can view it in your Positions list.
Note that once you open a position or deposit collateral, a snapshot of the USD price of your collateral is taken. For instance, if your collateral is 0.1 ETH and the price of ETH is 1864 USD at that time, your collateral is worth 186.4 USD and will remain so even if the price of ETH fluctuates.
Leverage is calculated as the ratio of the position size to the collateral amount (Position Size / Position Collateral). To adjust the leverage rate, you could increase or decrease your position on the same asset with a higher or lower collateral ratio compared to your original position.
Your profits and losses will be proportional to your position size. For example, if you use 186.4 USD to buy 1864 USD of ETH and ETH's price increases by 10%, you'd earn a profit of 186.4 USD. However, if ETH's price decreases by 10%, you would suffer a loss of the same amount. The opposite occurs for short positions.
Closing a Position:
You can partially or completly close a position by clicking on the "Market" button. Profits from long/short positions are paid in the asset you are trading.
Stop-Loss / Take-Profit Orders:
You can set stop-loss and take-profit orders by clicking on the "Limit" button; You can choose a trigger price to control your exit. After the order has been made, it will appear under the "Orders" tab.
If you close a position manually, the associated trigger orders will remain open. You need to cancel them manually if you don't want the order to be active when opening future positions. Note that orders are not guaranteed to execute at the trigger price.
Partial Liquidations:
Each position has a Liquidation Price, which is the price where your losses nearly equal your collateral amount. If the token's price falls below this point, the position will be automatically closed.
The liquidation price may change over time due to the borrow fee, especially if you use high leverage and keep the position open for several days. Therefore, it's crucial to monitor your liquidation price.
If there is any collateral left after deducting losses and fees, it will be returned to your account.
