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Futures Trading - Managing Positions

Guidance on managing open positions and understanding key actions.

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Written by Peter
Updated over a month ago

1. What Is a Position?

When you trade Futures, you do not buy or sell the actual crypto asset. Instead, you open a position that tracks the price movement of that asset.

A position represents:

  • Your market direction (up or down)

  • The size of your exposure

  • The margin you’ve committed

Once a position is open, your profit or loss (PnL) changes in real time as the price moves.


2. Long vs Short Positions (Detailed)

Long Position

You open a Long position when you believe the asset price will increase.

  • Profit if the price goes up

  • Loss if the price goes down

Example (Long):

  • BTC price: $50,000

  • You open a Long position

  • BTC rises to $52,000 → You make a profit

  • BTC falls to $48,000 → You incur a loss

Long positions are commonly used when markets are trending upward.


Short Position

You open a Short position when you believe the asset price will decrease.

  • Profit if the price goes down

  • Loss if the price goes up

Example (Short):

  • BTC price: $50,000

  • You open a Short position

  • BTC falls to $48,000 → You make a profit

  • BTC rises to $52,000 → You incur a loss

Short positions allow you to profit even in falling markets.


3. Order Size, Margin & Margin Modes

Order Size

Order size is the total value of the position you are opening.

Example:

  • Margin: $100

  • Leverage: 10×

  • Order size: $1,000

Larger order sizes amplify both profits and losses.


Margin

Margin is the collateral you lock to open and maintain a position.

It acts as a safety buffer against losses. If losses approach your margin amount, your position risks liquidation.


Margin Modes

Isolated Margin

  • Margin is assigned to a single position only

  • Losses are limited to the margin allocated

  • Other positions are not affected

Cross Margin

  • All available Futures balance is shared across positions

  • Profits from one position can offset losses in another

  • Higher risk of losing more funds if multiple positions move against you


4. Setting Take Profit (TP) & Stop Loss (SL)

You can set automatic triggers to lock in profits or stop losses so you don't have to watch the screen 24/7.

  • Take Profit (TP): Closes the trade automatically when you hit your profit target.

  • Stop Loss (SL): Closes the trade automatically to prevent further losses.

Setup Example:

  • Long Position: TP is set above your entry price; SL is set below it.

  • Short Position: TP is set below your entry price; SL is set above it.


TP/SL Configuration Options

Configure Amount

  • Defines how much of the position is closed when TP/SL triggers

  • Can be full or partial

Limit Price

  • Sets the execution price for limit-based TP/SL orders

  • Provides price control but may not execute in fast markets


5. How to Set TP/SL

You can set these at two different stages:


1. During Order Placement:

  • Check the "TP/SL" box in the order form.

  • Enter the specific trigger prices or enter percentage gain/loss

  • You can change TP/SL anytime, even once your position is open.

2. On an Open Position:

  • Go to the Positions tab.

  • Click "Add TP/SL" or the pencil icon.

  • Enter the amount of the position you want to close (or you can set a TP for 50% of your position and let the rest ride).


6. Closing a Position

Closing a position means exiting an existing Futures trade and realizing profit or loss. You can close a position fully or partially at any time.

Step-by-Step: How to Close a Position

  1. Go to Your Positions in the Futures section

  2. Select the position you want to close

  3. You will have 3 different options to close, depending how you want to exit:

    1. Close: This is the standard closing method. Users can choose whether to close the position using a market order or a limit order.

      Choose the Order Type:

      1. Market: Closes immediately at the best available price

      2. Limit: Closes at a specific price or better

        Select how much of the position you want to close:
        i) Full: Closes the entire position
        ii) Partial: Closes only a portion of the position

b. Flash Close: Flash Close immediately closes 100% of the open position at the current market price.

c. Reverse: Reverse closes the current position and opens a new position in the opposite direction in a single action. For example, a long position is closed and replaced with a short position.


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