# Managing Positions

A **position** represents a trader’s stance or expectation regarding the future price movement of a specific asset through a perpetual futures contract.\
In essence, it’s a speculative bet or investment based on the anticipated direction of the asset's price.

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## 🧭 Types of Positions

Perpetual futures trading involves two primary types of positions:

* 📈 **Long Position:** The trader expects the asset’s price to rise over time. They’re essentially betting on an upward price movement to gain profit.
* 📉 **Short Position:** The trader anticipates a decline in the asset’s price and aims to profit from a downward move.

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## 📊 Profit and Loss on Positions

The main goal of opening a position is to earn a profit based on the trader’s price prediction.\
If the market moves as expected, the trader can close the position and profit from the price difference between entry and exit.

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## ⚙️ Understanding Leverage

In perpetual futures trading, **leverage** plays a crucial role — it increases both the potential return and the risk.\
Leverage allows traders to control a larger position with a relatively smaller amount of capital, amplifying the impact of price changes on their account.

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## 🔍 How Leverage Works

For example, using **10x leverage** means the trader can control a position size ten times greater than their actual balance.

* ✅ Profits increase when the market moves in the trader’s favor
* ❌ Losses grow when the market moves against them

> ⚠️ **Important:** Excessive adverse movement may trigger a [liquidation](https://github.com/Tsunami-Exchange/storm-doc/blob/main/liquidation_ru.md), causing the trader to lose their initial margin (collateral).

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## ⚖️ Risk vs Reward

Leverage involves a delicate balance between potential gain and increased risk.\
Traders should apply [risk management strategies](https://github.com/Tsunami-Exchange/storm-doc/blob/main/trading_scenarios_ru.md) and set leverage levels that align with their risk tolerance and experience.

> 💡 Leverage is a powerful tool when used wisely — but can be harmful if misused.

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## 🛠 Practical Tips

### ✅ Opening a Leveraged Position

Storm Exchange offers a simple and intuitive interface to open a leveraged position.

1. Choose your trade direction:
   * **Long** — if you expect the price to go up
   * **Short** — if you expect it to go down
2. Set the following:
   * 💰 Collateral amount
   * 📏 Leverage level

🔢 **Formulas:**

* **Position Notional Value:**

$$
Position Notional = Collateral \* Leverage
$$

* **Position Size (in base asset):**

$$
Position Size = Position Notional / Entry Price
$$

🧮 **Example:**\
Leverage: **10x**\
Collateral: **$500**\
Entry Price: **$2000**

→ Notional: `500 * 10 = 5000 USDT`\
→ Position Size: `5000 / 2000 = 2.5 ETH`

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### 📈 Opening a Position with Orders

By default, positions are opened using **market orders**, which are executed almost instantly at the current market price.\
Some slippage may occur due to market impact or execution delay.

Storm Exchange also supports other order types — such as limit orders. Learn more in:\
📘 [Limit Orders](https://github.com/Tsunami-Exchange/storm-doc/blob/main/triggered_orders_ru.md)

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🏄 *By understanding position structure and leverage mechanics, you can trade more efficiently and with greater control.*