Zenith
  • 💡Introduction
  • 📈Perpetual Futures
    • Virtual AMM (VMM)
    • Funding Payment
    • Liquidation
    • Insurance Fund
    • Examples
    • Smart Contracts
    • Formula
  • 📊Architectures
  • 🔎Trader's Guide
    • Trading on Zenith
    • Connecting to Zenith
    • Opening Position
    • Closing Position
    • Increasing Position
    • Decreasing Position
    • Adding Margin
    • Reducing Margin
  • 💰Tokenomics
    • PPR Token
    • Distribution
    • Staking
  • ❓FAQ
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  1. Trader's Guide

Opening Position

PreviousConnecting to ZenithNextClosing Position

Last updated 2 years ago

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if the asset price rise is your expectation, you might want to buy it with the intention tois applied sell it at a higher price later on. In this case, the trading strategy will be to open a long position.

Conversely, a downtrend forecast might encourage one to sell a borrowed asset, and then, when the forecast proves to be accurate, buy it at a lower price.

To make a qualified decision as to which position to take, here are the trading dynamics for you to take into account:

To open a position:

  1. Depending on your overall strategy, select Long or Short below the diagram:

2. When opening a position:

  • Enter the amount of kUSD

  • Optionally, use the leverage

  • Note the following values change depending on the kUSD amount and leverage values:

    • the amount of the underlying asset.

    • the value in the Amount field. A commission of 2% of the initial value is applied to the quote currency.

    • the percentage of the Price impact value. Price impact reflects the shift in the proportion between the assets in the pool produced by the trade you are currently performing.

    • Slippage tolerance. The source for this change is the total number of other trades active as you create yours in real-time. Each trade contributes to the asset price change; therefore, depending on how intense the ongoing trading is, the price you expect to have and one to be eventually paid can differ.

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