Perpetual Trade

How to Profit from Perpetual

Perpetual contracts are derivative instruments with no expiration date. They allow users to go long or short the market using azUsd without holding the underlying asset, enabling profit from price fluctuations.In perpetual trading, you can use leverage to profit through:

  • Going Long: Expecting the price to rise — buy low and sell high to make a profit.

  • Going Short: Expecting the price to fall — sell high and buy back lower to earn the difference.

Open a Position

  1. Select the perpetual market you want to trade (e.g., ETH/USD).

  2. Choose your direction: Long or Short.

  3. Enter your desired leverage (e.g., 5x, 10x) and margin amount.

  4. Review the position details and confirm the order.

  5. Once the order is filled, your position will be created.

Manage Position

During the trade, keep an eye on key position metrics:

  • Unrealized PnL: Shows the current floating profit or loss of your position in real time.

  • Borrow Fee: Opening a leveraged position utilizes capital from the Vault. The system charges a borrow fee based on the position size and holding time. This fee is dynamic and should be monitored regularly to assess its impact on overall returns.

  • Liquidation Price: If the mark price reaches this level, your position will be automatically liquidated to limit losses.

  • Edit Margin: You can adjust your margin at any time to modify leverage or reduce liquidation risk.

Close a Position

When the market reaches your target or you want to stop a loss, you can close your position at any time. The system will execute at the current mark price:

  • After closing, the system will automatically settle your PnL and fees, and return the remaining margin to your wallet.

View History

In the History tab, you can view all past trades and position activities, including opening and closing positions, adding or reducing margin, and liquidation records.

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