Storm Trade
Storm Trade
Storm Trade
  • ๐Ÿ“˜Introduction
    • ๐Ÿ”ฎWhat is Futures Trading
    • โšกAbout Storm Trade
    • ๐Ÿ›ฃ๏ธRoadmap
  • ๐ŸŒ€STORM Token Overview
    • ๐Ÿช™STORM Token
    • ๐Ÿš€Launch Plan (Archive)
    • ๐Ÿ“ŠTokenomics
    • ๐Ÿ’ฐSTORM LP Token
  • ๐ŸŽ“Storm Academy
    • ๐Ÿง‘โ€๐ŸซAbout Storm Academy
    • ๐Ÿ“šLearn and Earn
  • ๐ŸŽRewards & Incentives
    • ๐Ÿ’ŽRP Mining (Season 2)
  • ๐Ÿ”งGetting Started
    • ๐Ÿ”ŒConnecting to the Platform
    • ๐Ÿ—บ๏ธStorm Trade Navigation
    • ๐Ÿ”„How to get USDT and TON
    • โœ…First Trade Walkthrough
  • ๐Ÿ’ผTrading Mechanics
    • ๐Ÿ“ˆMargin & Markets
    • ๐ŸงพManaging Positions
    • ๐ŸงฎFees
    • ๐Ÿค–Margin with TON Collateral
    • ๐ŸปPre-Launch Futures
  • ๐Ÿ“šTrading Concepts
    • ๐Ÿค‘PnL and ROI
    • ๐ŸŒก๏ธMargin Management
    • ๐ŸŽญStop Loss / Take Profit
    • ๐Ÿ’กOrder Types
    • ๐ŸŒŠLiquidation
    • ๐Ÿง Trading Scenarios
  • โš™๏ธProtocol Mechanics
    • โœŠRisk Management
    • ๐Ÿค–Keeper Bots
    • ๐Ÿ’ŽFees Distribution
    • ๐Ÿ”ฎOracles
  • ๐ŸŒCommunity & Social
    • ๐Ÿ’ŽReferral Program
    • ๐ŸŽ™๏ธTrade Sharing
    • ๐Ÿฅ‡Excelling at Trading
  • ๐Ÿง‘โ€๐Ÿ’ปFor Developers
    • ๐Ÿ› ๏ธStorm Trade SDK
    • ๐Ÿ”ŒStorm Trade API
  • ๐Ÿ”—Links
    • ๐ŸŒOfficial Website
    • ๐Ÿ“ขOfficial Channel
    • ๐Ÿค–Telegram Mini App
    • ๐ŸŽ“Storm Academy
    • ๐Ÿ’ฌCommunity
    • ๐Ÿ’ŽNFT Holders (Exclusive)
    • โœ๏ธMirror Blog
    • ๐ŸฆX (Twitter)
    • ๐Ÿ›ŸHelp & Support
Powered by GitBook
On this page
  • ๐Ÿงญ Types of Positions
  • ๐Ÿ“Š Profit and Loss on Positions
  • โš™๏ธ Understanding Leverage
  • ๐Ÿ” How Leverage Works
  • โš–๏ธ Risk vs Reward
  • ๐Ÿ›  Practical Tips
  • โœ… Opening a Leveraged Position
  • ๐Ÿ“ˆ Opening a Position with Orders

Was this helpful?

  1. Trading Mechanics

Managing Positions

A position represents a traderโ€™s stance or expectation regarding the future price movement of a specific asset through a perpetual futures contract. In essence, itโ€™s a speculative bet or investment based on the anticipated direction of the asset's price.


๐Ÿงญ Types of Positions

Perpetual futures trading involves two primary types of positions:

  • ๐Ÿ“ˆ Long Position: The trader expects the assetโ€™s price to rise over time. Theyโ€™re essentially betting on an upward price movement to gain profit.

  • ๐Ÿ“‰ Short Position: The trader anticipates a decline in the assetโ€™s price and aims to profit from a downward move.


๐Ÿ“Š Profit and Loss on Positions

The main goal of opening a position is to earn a profit based on the traderโ€™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.


โš™๏ธ Understanding Leverage

In perpetual futures trading, leverage plays a crucial role โ€” 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.


๐Ÿ” How Leverage Works

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

  • โœ… Profits increase when the market moves in the traderโ€™s favor

  • โŒ Losses grow when the market moves against them


โš–๏ธ Risk vs Reward

๐Ÿ’ก Leverage is a powerful tool when used wisely โ€” but can be harmful if misused.


๐Ÿ›  Practical Tips

โœ… Opening a Leveraged Position

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

  1. Choose your trade direction:

    • Long โ€” if you expect the price to go up

    • Short โ€” if you expect it to go down

  2. Set the following:

    • ๐Ÿ’ฐ Collateral amount

    • ๐Ÿ“ Leverage level

๐Ÿ”ข Formulas:

  • Position Notional Value:

PositionNotional=Collateralโˆ—LeveragePosition Notional = Collateral * LeveragePositionNotional=Collateralโˆ—Leverage
  • Position Size (in base asset):

PositionSize=PositionNotional/EntryPricePosition Size = Position Notional / Entry PricePositionSize=PositionNotional/EntryPrice

๐Ÿงฎ Example: Leverage: 10x Collateral: $500 Entry Price: $2000

โ†’ Notional: 500 * 10 = 5000 USDT โ†’ Position Size: 5000 / 2000 = 2.5 ETH


๐Ÿ“ˆ 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.


๐Ÿ„ By understanding position structure and leverage mechanics, you can trade more efficiently and with greater control.

PreviousMargin & MarketsNextFees

Last updated 1 month ago

Was this helpful?

โš ๏ธ Important: Excessive adverse movement may trigger a , causing the trader to lose their initial margin (collateral).

Leverage involves a delicate balance between potential gain and increased risk. Traders should apply and set leverage levels that align with their risk tolerance and experience.

Storm Exchange also supports other order types โ€” such as limit orders. Learn more in: ๐Ÿ“˜

๐Ÿ’ผ
๐Ÿงพ
liquidation
risk management strategies
Limit Orders