Managing Positions
Once you've opened a trade, you can view it in your Positions list. You can also click "Edit" to deposit or withdraw collateral, giving you the ability to adjust your leverage and manage your liquidation price.
Opening a Position
Click on "Long" or "Short" on the Trade page to choose which direction you want to take for a leveraged position.
Long position: Profits if the token's price increases and incurs a loss if the price decreases.
Short position: Profits if the token's price decreases and incurs a loss if the price increases.
Once you've selected your position, enter the amount you wish to invest and the level of leverage you want to apply.
The "Exit Price" is the value used to calculate your potential profit if you were to close the position immediately after opening it. This price will fluctuate based on the token's current price, whether you are going long or short.
Selecting a Market
You can select a market by changing the token that you'd like to Long or Short.
Selecting a Pool
Multiple pools may be available for your selected market, for example, there may be an SEI-USDC and SEI-USDT pool. You can select which pool you'd like to trade in depending on which collateral you prefer to be backing your positions.
Selecting a Collateral
Different types of collateral may be available for the market you choose. For instance, in the SEI-USDC market, you can decide whether to use SEI or USDC as collateral for your position.
Here are some examples:
Long SEI with SEI as collateral: You'll be exposed to SEI both through your long position and your SEI collateral. For example, you could open a 0.1 SEI long position while using 1 SEI as collateral, giving you a total exposure of 1.1 SEI.
Long SEI with USDC as collateral: Your exposure to SEI comes only from your long position, making this option useful if you frequently switch between long and short positions.
Short SEI with SEI as collateral: This setup can be effective for delta-neutral strategies to earn funding fees. For example, if shorts receive funding fees, you could open a 1 SEI short position backed by 1 SEI as collateral.
Short SEI with USDC as collateral: Like the long position with USDC collateral, this option is helpful if you often alternate between long and short positions.
Keep in mind that if you open a long position using a non-stablecoin as collateral, your liquidation price may fluctuate as the value of your collateral changes.
Max Leverage
The maximum leverage allowed for a pool will decrease as the total open interest in the pool increases. This measure helps protect the pool from price impact manipulation through high-leverage positions. While this mainly impacts markets with lower liquidity, it can also affect high-liquidity markets if the open interest becomes significantly large. The interface will display a warning if your intended leverage exceeds the allowed limit. It's important to note that this only applies when opening or increasing positions; it does not impact positions that are already open. For closing or reducing positions, if reducing leverage would exceed the maximum allowed, the order can still be executed, but the collateral within the position will remain unchanged.
Closing a Position
You can close a position partially or entirely by clicking the "Close" button in the position row. When you close a position, any pending profits or losses will be realized in proportion to the percentage of the position that is closed.
For long positions, profits are paid out in the asset you were longing. For instance, if you had a long position on SEI, your profits would be in SEI.
For short positions, profits are paid out in the same stablecoin that was used to open the position, such as USDC or USDT.
You can choose to receive a different token when closing a position by changing the "Receive" token in the "Close Position" menu. If a swap is necessary to convert your profit token to the selected token, any applicable swap fees will be displayed in the menu.
The profit or loss from a position, excluding any changes in your collateral's value, will be proportional to your position size. For example, if you open a long SEI position worth 10,000 USD, and the price of SEI increases by 10%, you would gain 1,000 USD. Conversely, if the price drops by 10%, you would lose 1,000 SEI.
If you had opened a short position instead, a 10% decrease in SEI's price would result in a 1,000 USD profit, while a 10% increase would lead to a 1,000 USD loss.
Leverage is typically displayed as (position size) / (position collateral). If you prefer to display it as (position size + PnL) / (position collateral), you can adjust this in the "Settings" menu by clicking on the "..." icon in the top right corner.
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