Click on "Long" or "Short" depending on which side you would like to open a leverage position on.
- Long position
- Earns a profit if the token's price goes up
- Makes a loss if the token's price goes down
- Short position
- Earns a profit if the token's price goes down
- Makes a loss if the token's price goes up
To open a 5x long position on Ethereum (ETH), a trader can click on the "Long" button and enter the amount they want to pay and the leverage they want to use. For instance, if they want to use 0.1 ETH worth 112.84 USD, they would be able to buy a long position of size 561.43 USD.
The "Entry Price" is $1128.49 and the Liquidation Price is $912.94. Below the swap box you would also see the "Exit Price", which is the price that would be used to calculate profits if you open and then immediately close a position. The exit price will change with the price of the token you are longing or shorting.
While there are no price impacts for trades, there can be price differentials due to price movements between when your trade transaction is submitted and when it is confirmed on the blockchain. Slippage is the difference between the expected price of the trade and the execution price, this can be customised by clicking on the "..." icon next to your address at the top right of the page.
After opening a trade, you would be able to view it under your Positions list, you can also click on "Edit" to deposit or withdraw collateral, this allows you to manage your leverage and liquidation price.
When opening a new position or depositing collateral, a snapshot of the USD price of the collateral is taken. For example, if your collateral is 0.1 ETH and the price of ETH is $1128.49 at the time, then your collateral is 112.84 USD and will not change even if the price of ETH changes.
The amount of profit and loss you make will be proportional to your position size. In this example, 112.84 USD has been used to buy 561.43 USD of ETH. If the price of ETH increases by 10%, the position would have a profit of 56.14 USD, if the price of ETH decreases by 10%, the position would have a loss of 56.14 USD.
If a short position was opened instead, then if the price of ETH decreased by 10% the position would have a profit of 56.14 USD, if the price of ETH increased by 10%, the position would have a loss of 56.14 USD.
Leverage for a position is displayed as (position size) / (position collateral). If you'd like to display the leverage as (position size + PnL) / (position collateral), you can customise this by clicking on the "..." button next to your address.
Note that when choosing a token as collateral, a swap fee will be incurred if a different collateral asset than that required was chosen. This is to prevent deposits from being used as a zero fee swap. This does not apply to shorts. Withdrawing of collateral from longs and shorts do not have this fee as well.
You can close a position partially or completely by clicking on the "Close" button.
For long positions, profits are paid in the asset you are longing, e.g. if you long ETH you would get your profits as ETH.
For short positions, profits will be paid out in BUSD that you used to open the position.
In the example, since only 112.84 USD worth of tokens is used as collateral to open the position, there will be a price at which the loss amount is very close to the collateral amount.
This is the Liquidation Price and is calculated as the price at which the (collateral - losses - borrow fee) is less than 1% of your position's size. If the token's price crosses this point then the position will be automatically closed and liquidation will happen.
Due to the borrow fee your liquidation price will change over time, especially if you use a leverage that is more than 10x and have the position open for more than a few days, so it is important to monitor your liquidation price.
If there is any collateral remaining after deducting losses and fees, then the corresponding amount would be returned to your account.
There is no price impact for trades on KTX.Finance, so large orders can be executed exactly at the mark price. During times of high volatility there is only a small spread for entering and exiting trades.
- The mark prices are displayed next to the market name and under the swap box.
- Long positions will be opened at the higher price and closed at the lower price while short positions will be opened at the lower price and closed at the higher price.