Positions

Creating a Position

Start by selecting the direction of the leverage position you would like to open: “Long” or “Short”.

Collateral and Leverage

Enter a collateral amount above the minimum $20 and choose the amount of leverage to use on the position. These two factors determine the Position Size:

The average entry price and position size will determine the position quantity as follows:

Example: If a user longs ETH/USD at 2000 and selects 10x leverage level with 500 USD collateral, their position size will be 5,000 USD and position quantity will be 2.50 ETH

Position Management

Vela Exchange and the 1CT positions are managed separately by toggling between the wallets. It is important to understand that these two wallets are unique and not combined within the Open Positions dashboard.

Traders can manage account balance risk by using an optional percent slider rather than inputting a collateral amount. For example if a user has 10,000 USD in free collateral and types in 2.00% then they will put up 200 USD collateral into the position.

Vela Exchange offers the following order types to open a new position:

  • Market: Order will fill near the current mark price. The difference between where the order is executed and the current mark price is determined by any artificial slippage and/or execution delay due to keepers.

  • Limit: Order will fill at selected limit price or better. For longs, if limit price is set above mark price, then the order is treated as a market order. For shorts, if the limit price is set below mark price then the order is treated as a market order.

  • Stop Market: A market order will be activated when price reaches the stop price. Stop price must be placed above mark price for longs and below mark price for shorts. If not the order will be triggered as a market order.

  • Stop Limit: A limit order will be activated when the price reaches the stop price. Stop price must be placed above mark price for longs and below mark price for shorts. If not the order will be triggered as a market order.

Mark Price: This will show the price of the asset at the current moment in time.

Liquidation Price: This will show the asset price at which the position will be liquidated. If the mark price of the asset goes beyond this point (lower in case of a Long position, higher in case of a Short position), it will automatically close the position and the majority of the collateral used for the position will be lost. Please take note that the liquidation price can fluctuate as funding fees are deducted from your collateral throughout the duration of the open position.

Setting a TP/SL at Position Creation: An option is provided during opening of a new position to enter a TP and/or SL that is automatically set to fully close 100% of the position at the given trigger price for each. It is possible to manually enter a percent amount for each which will auto populate the corresponding price level at which the TP/SL is triggered.

For example, assume in the graphic below the user is LONG on ETH/USD via a Limit Order set a 1886.93. They can then set a SL at 5.00% (~1797.11) and a TP at 5.00% (~1986.24), resulting in a Risk to Reward on the trade of 1:1.

Front-running Protection

To protect users and the exchange from front-running, both keepers and an artificial slippage mechanism have been introduced.

Keepers

When a trader opens a new position via market order, the order first goes into a pending state.

Vela Exchange maintains keeper nodes that monitor pending orders and validates positions before each order is executed at the latest oracle price.

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