Perpetual Trading

Leveraged positions on an asset are opened by executing a ‘Long’ or ‘Short’. When you Long, you speculate that the future price will exceed the current price. When you short, you speculate the future price will be below the current price.

Long position

  • Earns a profit if the token price goes up

  • Makes a loss if the token price goes down

Short position

  • Earns a profit if the token price goes down

  • Makes a loss if the token price goes up

💡 Trade with leverage on LEVEL here

Opening a Position

  1. Connect your wallet

  2. Navigate to the Leveraged Trading page

  3. Click on ‘Long’ or ‘Short’ depending on which side you would like to open a leveraged position on

  4. Choose the Market you want to open a Leveraged position on (e.g. BTC)

  5. Choose the token you want to pay in. If you choose a different collateral asset than that required, a swap fee will be incurred

  6. Enter the Amount of the token you want to Pay and the Leverage you want to use. E.g. 0.05 BTC (~$1,447.28) used to buy 10x Long position ~$14,329.53 in size

  7. Check that the output variables shown below are as expected:

  • Entry Price: the price at which the position will be opened

  • Liquidation Price: the price at which your entire position will be liquidated

  • Borrow Fee: the hourly fee paid to the counterparty of your trade (LLPs) - will vary based on asset utilization

  1. Click ‘APPROVE BTC’

  2. Sign the pop-up transaction in your wallet

  3. After the transaction has been completed, click ‘BUY BTC’

  4. Confirm the pop-up transaction in your wallet

  5. Once confirmed in your wallet, you will see a ‘Successful’ pop-up on the LEVEL UI after a few seconds. Your trade is now open!

Managing Positions

After opening a trade, it is visible in a list under your Positions, as shown above. Various actions are available to manage your position:

  • Deposit: allows you to deposit additional collateral to reduce your leverage

  • Withdraw: allows you to withdraw existing collateral to increase your leverage

  • Close: allows you to partially or completely close a trade

The profit or loss made on a position is proportional to the collateral used and the overall position size.

In the example above, $1,447.28 of collateral has been used to buy a position size of $14,329.53 in BTC (10x leverage). If the price of BTC increased from your Entry Price by 10%, the position would have a profit of $1,432.95. Conversely, if the price of BTC decreased from your Entry Price by 10%, the position would have a loss of $1,432.95.

If a short position had been opened instead and the price of BTC decreased by 10% from your Entry Price, then the position would have a profit of $1,432.95. Conversely, if the price of BTC increases by 10% from your Entry Price, the position would have a loss of $1,432.95.

Deposit

When opening a new position or depositing additional collateral, a snapshot of the USD price of the collateral is taken. For example, if your collateral is 0.05 BTC (worth $847.57 at the time) then your collateral is $847.57 and will not change even if the price of BTC changes.

Additional collateral can be deposited to an open position by clicking on ‘Deposit’ in your Positions list.

Depositing additional collateral reduces the leverage and liquidation price of a trade. The image below shows the impact of adding ~25% additional collateral to an open position.

Depositing collateral helps to reduce the risk of position liquidation

  1. Connect your wallet

  2. Navigate to the Leveraged Trading page

  3. Click on ‘Deposit’ in your Positions List

  4. Enter the Amount of collateral you want to Deposit

  5. Check that the output variables shown below are as expected

    1. Leverage: Position Size / Collateral Value

    2. Liquidation Price: the price at which your entire position will be liquidated

  6. Click ‘CONFIRM’

  7. Confirm the pop-up transaction in your wallet

Withdraw

Collateral can be withdrawn from an open position by clicking on ‘Withdraw’ in your Positions list.

Withdrawing collateral increases the leverage and liquidation price of a trade. The image below shows the impact of removing ~20% of the collateral on an open position.

Note: A maximum withdrawal limit is applied to prevent the position from getting liquidated.

Withdrawing collateral increased the risk of position liquidation

  1. Connect your wallet

  2. Navigate to the Leveraged Trading page

  3. Click on ‘Withdraw’ in your Positions List

  4. Enter the Amount of collateral you want to Withdraw

  5. Check that the output variables shown below are as expected

  • Leverage: Position Size / Collateral Value

  • Liquidation Price: the price at which your entire position will be liquidated

  1. Click ‘CONFIRM’

  2. Confirm the pop-up transaction in your wallet

Closing a Position

A position can be closed by clicking on ‘Close’ in your Positions list.

  • For long positions, profits are paid in the asset you are longing (e.g. if you long BTC you would get your profits as BTC)

  • For short positions, profits will be paid out in USDT - shorts opened with other collateral will be swapped to USDT before opening the position

The position can either be fully or partially closed when closing an open position.

When partially closing a position, you can select two separate closing options:

  1. Reduce size and keep leverage the same: only the sizing of the trade is affected (Position Size, Collateral Value, Net Value), and not the Leverage or Liquidation Price.

  2. Reduce size and leverage without withdrawing collateral: collateral is kept the same whilst both the position size and leverage are reduced. The collateral will, however, take on any loss from the open position where a portion of the collateral will be deducted to cover the loss.

The image below shows the impact of closing ~25% of an open position whilst keeping leverage the same.

If partially closing a position, you need to maintain at least $5 in net value to prevent the position from getting liquidated

  1. Connect your wallet

  2. Navigate to the Leveraged Trading page

  3. Click on ‘Close’ in your Positions List

  4. Select ‘Market order’ in the ‘Order Type’ dropdown

  5. Select the ‘Closing Option’ you would like to use

  6. Enter the Size of the position you want to Close

  7. Check that the output variables shown below are as expected

    • Liquidation Price

    • Position Size

    • Collateral Value

    • Leverage

  8. Click ‘CONFIRM’

  9. Confirm the pop-up transaction in your wallet

Take Profit and Stop Loss

A take profit is used as a target within your trade plan, whereupon hitting this price level, a full or partial close with be triggered on the position. A stop loss is used to exit a trade upon invalidation of your original plan, protecting yourself from further losses by triggering at a certain price level. Both of these actions are set at specific trigger prices, a Take Profit above the current price, and a Stop Loss below the current price.

Take profit and stop loss functions are available within the ‘Close’ window after clicking on ‘Close’ in your Positions List. Instead of closing the position at the market price (Market Order), you can select Take Profit or Stop Loss functions under the ‘Order Type’ dropdown to choose to trigger actions at a specific price.

  1. Connect your wallet

  2. Navigate to the Leveraged Trading page

  3. Click on ‘Close’ in your Positions List

  4. Select either ‘Take Profit’ or ‘Stop Loss’ in the ‘Order Type’ dropdown

  5. Select the ‘Trigger Price’ you want your Take Profit or Stop Loss to trigger at

  6. Select the ‘Closing Option’ you would like to use

  7. Enter the Size of the position you want to Close when the Trigger Price is hit

  8. Check that the output variables shown below are as expected

    1. Liquidation Price

    2. Position Size

    3. Collateral Value

    4. Leverage

  9. Click ‘CONFIRM’

  10. Confirm the pop-up transaction in your wallet

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