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Position is the trader's stance or exposure to potential price movements in a specific asset within a perpetual exchange. Essentially, a position represents a speculative bet or investment in the anticipated future price direction of the chosen asset.
Perpetual exchange involves two primary types of positions.
Long:
Earns a profit if the token's price goes up;
Gets a loss if the token's price goes down.
Short:
Earns a profit if the token's price goes down;
Gets a loss if the token's price goes up.
Your initial investment amount into the position is a collateral of the leveraged borrowing amount.
When you use leverage, you borrow additional funds to supplement your initial investment, thus increasing the exposure to the underlying asset.
The size of your position is your initial collateral plus a borrowed amount based on selected leverage.
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