📈Positions

In Perp (perpetual futures, also known as perpetual swaps or simply perpetuals) trading, a trader’s position reflects their speculation on an asset’s price. Traders can adopt a Long Position, expecting a rise, or a Short Position, expecting a fall.

There Are Two Main Position Types:

1. Long Position Here, a trader thinks the asset's price will go up. They're essentially betting on a price rise to turn a profit.

2. Short Position In this case, a trader believes the asset's price will fall. They're betting on a price drop to earn profits from the decrease in value.

In Perps, Leverage is key to increasing potential profits. However, it can also amplify the risk of loss. It allows traders to open larger positions with less capital, magnifying the impact of price changes on their balances. For example, using 10x Leverage means maintaining a position ten times its size. This can increase profits when the market moves in a favorable direction (up for Long Positions and down for Short Positions), or increase losses by the same multiplier. Importantly, Leverage carries a liquidation risk, meaning traders can lose their initial Margin if the market moves drastically and unfavorably.

Opening Leveraged Position

To open a leveraged position, you need to first figure out your Margin (the amount of your funds you’re going to trade with before any Leverage is applied) and Leverage Ratio. These two factors together define your Position Size expressed in US dollars.

$$Position Size = Initial Margin * Leverage Ratio$$

For a clearer understanding, let's consider an example:

Suppose a trader goes for 10x Leverage and a $500 Margin, their Position Size will be $5,000 . This means that with the Leverage factored in, the trader effectively controls a position worth $5,000, by only pledging $500 of their personal funds. This shows how Leverage enables traders to increase their impact on the market by using relatively small personal capital.

Position Type

HunteX’s Simple Futures provides Isolated Margin functionality, meaning that for each position and trading pair, there is its own margin set by the user that can’t be tapped into by other distressed positions needing more Margin to stay open. On HunteX, all positions are managed separately.

• Users can open various unique isolated positions.

• Each position is independent, with no possibility of adding any extra margin to an open position from other positions

• The liquidation price and risk are calculated and specific to each individual position/trading pair, ensuring that one position getting liquidated does not affect other positions.