Position Actions

Initial Setup

Wallet Connection on Klaytn: Ensure your wallet is configured and connected to the Klaytn network for interaction with positions either via the user interface or the contract API.

Margin Adjustments

Adding Margin

Objective: Increase your position's margin to lower its leverage and extend the liquidation threshold.
Constraint: The leverage after adding margin cannot fall below 1x.
Illustration: With an existing 10 ETH position at 10x leverage (and 1 ETH margin), adding an additional 1 ETH in margin adjusts the position to 2 ETH margin, reducing leverage to 5x.

Removing Margin

Purpose: Decrease your position's margin to heighten its leverage and adjust the liquidation price closer. This option is exclusive to Chainlink-supported markets.
Limitation: Leverage cannot surpass the maximum permitted by the market, and any negative P/L must be covered by the remaining margin plus a 10% safety buffer.
Example: For a 10,000 USDC position at 5x leverage (and 2,000 USDC margin), with a -500 USDC P/L, up to 1,450 USDC can be safely removed after accounting for the loss coverage and buffer.

Position Closure

Method: Close any position by placing an order in the opposite direction with the Reduce-Only option to prevent opening a new position.
User Interface Utility: Use the trading platform's feature to close positions directly through a convenient interface, typically involving a market reduce-only order in the opposite direction.

Profit and Loss Management

Take-Profit Strategy

Action: Set a reduce-only limit order in the opposite direction to lock in profits once a target is reached.
Example: For a long position of 10 ETH at $1,000, implement take-profit through one or multiple limit, reduce-only sell orders at predetermined sizes and prices.

Stop-Loss Strategy

Action: Implement a reduce-only stop order in the opposite direction to limit losses upon reaching a set threshold.
Example: For a short position of 10 ETH at $100, execute stop-loss via one or more stop, reduce-only buy orders, tailored in size and price.

Take-profit and stop-loss orders remain active until manually canceled, even if the position is closed by other means.

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Last updated 1 year ago

Margin Adjustments

Adding Margin

Objective: Increase your position's margin to lower its leverage and extend the liquidation threshold.

Constraint: The leverage after adding margin cannot fall below 1x.

Illustration: With an existing 10 ETH position at 10x leverage (and 1 ETH margin), adding an additional 1 ETH in margin adjusts the position to 2 ETH margin, reducing leverage to 5x.

Removing Margin

Purpose: Decrease your position's margin to heighten its leverage and adjust the liquidation price closer. This option is exclusive to Chainlink-supported markets.

Limitation: Leverage cannot surpass the maximum permitted by the market, and any negative P/L must be covered by the remaining margin plus a 10% safety buffer.

Example: For a 10,000 USDC position at 5x leverage (and 2,000 USDC margin), with a -500 USDC P/L, up to 1,450 USDC can be safely removed after accounting for the loss coverage and buffer.

Position Closure

Method: Close any position by placing an order in the opposite direction with the Reduce-Only option to prevent opening a new position.

User Interface Utility: Use the trading platform's feature to close positions directly through a convenient interface, typically involving a market reduce-only order in the opposite direction.

Profit and Loss Management

Take-Profit Strategy

Action: Set a reduce-only limit order in the opposite direction to lock in profits once a target is reached.

Example: For a long position of 10 ETH at $1,000, implement take-profit through one or multiple limit, reduce-only sell orders at predetermined sizes and prices.

Stop-Loss Strategy

Action: Implement a reduce-only stop order in the opposite direction to limit losses upon reaching a set threshold.

Example: For a short position of 10 ETH at $100, execute stop-loss via one or more stop, reduce-only buy orders, tailored in size and price.

Take-profit and stop-loss orders remain active until manually canceled, even if the position is closed by other means.