> ## Documentation Index
> Fetch the complete documentation index at: https://docs.limora.finance/llms.txt
> Use this file to discover all available pages before exploring further.

# Opening Trades

> How to open leveraged positions on Limora

This guide walks you through the process of opening a leveraged trading position on Limora.

***

## Prerequisites

Before opening a trade, ensure you have:

<Check>Wallet connected to Limora</Check>
<Check>Base network selected</Check>
<Check>ETH for gas fees (\~\$0.10)</Check>
<Check>USDC deposited to trading balance</Check>

***

## Step-by-Step Guide

<Steps>
  <Step title="Select Trading Pair">
    On the Trade page, click the pair selector dropdown and choose your desired trading pair (e.g., BTC/USDC).

    The current oracle price and 24h price change will be displayed.
  </Step>

  <Step title="Choose Direction">
    Select your trade direction:

    * **Long**: You profit when the price goes up
    * **Short**: You profit when the price goes down

    The interface will update to show relevant calculations for your chosen direction.
  </Step>

  <Step title="Enter Collateral Amount">
    Input the amount of USDC you want to use as collateral:

    * Minimum: 10 USDC (varies by pair)
    * Maximum: Your available trading balance

    This is the maximum amount you can lose on the trade (excluding fees).
  </Step>

  <Step title="Set Leverage">
    Adjust the leverage slider to your desired multiplier:

    | Leverage | Risk Level | Position Size (on 100 USDC) |
    | -------- | ---------- | --------------------------- |
    | 2x       | Low        | 200 USDC                    |
    | 5x       | Medium     | 500 USDC                    |
    | 10x      | High       | 1,000 USDC                  |
    | 25x+     | Very High  | 2,500+ USDC                 |

    Higher leverage means higher potential profits but also higher risk of liquidation.
  </Step>

  <Step title="Configure Risk Management (Optional)">
    Set stop-loss and take-profit levels:

    **Stop-Loss**: Automatically close if price moves against you

    * For longs: Set below entry price
    * For shorts: Set above entry price

    **Take-Profit**: Automatically close when target is reached

    * For longs: Set above entry price
    * For shorts: Set below entry price
  </Step>

  <Step title="Review Order Details">
    Before confirming, review the order summary:

    * **Position Size**: Collateral × Leverage
    * **Entry Price**: Current oracle price
    * **Liquidation Price**: Price at which position closes automatically
    * **Opening Fee**: Fee charged to open the position
    * **Estimated Interest**: Hourly cost while position is open
  </Step>

  <Step title="Submit Trade">
    Click "Open Trade" to submit your order. Your wallet will prompt you to sign the transaction. Review the details and confirm.
  </Step>

  <Step title="Wait for Matching">
    Your trade enters the pending queue while waiting for a matcher to provide liquidity.

    * Most trades are matched within minutes
    * Large positions may take longer
    * You can cancel pending trades if not yet matched
  </Step>
</Steps>

***

## Order Summary Explained

Before submitting, understand each field in the order summary:

### Position Size

```
Position Size = Collateral × Leverage
```

Example: 100 USDC collateral at 10x leverage = 1,000 USDC position

### Entry Price

The oracle price at the moment your trade is matched. Note that this may differ slightly from the price shown when you submit, depending on how quickly matching occurs.

### Liquidation Price

The price at which your position will be automatically closed:

**For Longs:**

```
Liquidation Price ≈ Entry Price × (1 - 0.9/Leverage)
```

**For Shorts:**

```
Liquidation Price ≈ Entry Price × (1 + 0.9/Leverage)
```

<Warning>
  If the market price reaches your liquidation price, your position will be
  closed and you will lose most or all of your collateral.
</Warning>

### Fees

| Fee Type    | Rate                  | When Charged           |
| ----------- | --------------------- | ---------------------- |
| Opening Fee | 0.1% of position size | On trade open          |
| Closing Fee | 0.1% of position size | On trade close         |
| Interest    | Variable (hourly)     | While position is open |

***

## Example Trade

Let's walk through a complete example:

<Card title="Example: Long BTC at 10x">
  **Setup:**

  * Trading Pair: BTC/USDC
  * Direction: Long
  * Collateral: 100 USDC
  * Leverage: 10x
  * Entry Price: \$50,000

  **Calculations:**

  * Position Size: 100 × 10 = 1,000 USDC
  * Liquidation Price: \~\$45,500 (-9% from entry)
  * Opening Fee: 0.1% × 1,000 = 1.00 USDC

  **Scenarios:**

  *If BTC rises to \$55,000 (+10%):*

  * Profit: 1,000 × 10% = 100 USDC
  * Return: 100% on collateral

  *If BTC falls to \$47,500 (-5%):*

  * Loss: 1,000 × 5% = 50 USDC
  * Return: -50% on collateral

  *If BTC falls to \$45,500 (-9%):*

  * Position liquidated
  * Loss: \~90 USDC (most of collateral)
</Card>

***

## Setting Stop-Loss and Take-Profit

Protect your capital with automated exit orders:

### Stop-Loss

A stop-loss order closes your position when the price moves against you by a specified amount.

<Tabs>
  <Tab title="For Longs">
    Set your stop-loss **below** the entry price. **Example**: Entry at $50,000,
            Stop-Loss at $48,000 - If price falls to \$48,000, position closes
    automatically - Maximum loss limited to 4% of position size
  </Tab>

  <Tab title="For Shorts">
    Set your stop-loss **above** the entry price. **Example**: Entry at $50,000,
            Stop-Loss at $52,000 - If price rises to \$52,000, position closes
    automatically - Maximum loss limited to 4% of position size
  </Tab>
</Tabs>

### Take-Profit

A take-profit order locks in gains when the price reaches your target.

<Tabs>
  <Tab title="For Longs">
    Set your take-profit **above** the entry price. **Example**: Entry at
    $50,000, Take-Profit at $55,000 - If price rises to \$55,000, position closes
    automatically - Profit of 10% of position size is locked in
  </Tab>

  <Tab title="For Shorts">
    Set your take-profit **below** the entry price. **Example**: Entry at
    $50,000, Take-Profit at $45,000 - If price falls to \$45,000, position closes
    automatically - Profit of 10% of position size is locked in
  </Tab>
</Tabs>

***

## Tips for Opening Trades

<AccordionGroup>
  <Accordion title="Start small">
    Open small positions initially to understand the platform mechanics before
    committing larger amounts.
  </Accordion>

  <Accordion title="Use appropriate leverage">
    Higher leverage means smaller price moves can liquidate your position. For
    most traders, 5-10x provides good upside while managing risk.
  </Accordion>

  <Accordion title="Always use stop-losses">
    Protect your capital by setting a stop-loss on every trade. Decide your
    maximum acceptable loss before entering.
  </Accordion>

  <Accordion title="Consider the fees">
    Factor in opening fee, closing fee, and interest when calculating potential
    profits. These costs add up, especially for short-term trades.
  </Accordion>

  <Accordion title="Check liquidity">
    Larger positions may take longer to match. If you're trading size, be
    patient or split into multiple smaller trades.
  </Accordion>
</AccordionGroup>

***

## Common Issues

<AccordionGroup>
  <Accordion title="Trade stuck in pending">
    * Large positions may take longer to find matching liquidity - During high
      volatility, matchers may be cautious - You can cancel and retry with a
      smaller size
  </Accordion>

  <Accordion title="Entry price different than expected">
    The entry price is determined at the moment of matching, not when you
    submit. During fast markets, this can result in slightly different
    execution.
  </Accordion>

  <Accordion title="Insufficient balance error">
    Ensure you have enough USDC in your trading balance (not just wallet
    balance). You also need ETH for gas fees.
  </Accordion>
</AccordionGroup>

***

## Next Steps

<CardGroup cols={2}>
  <Card title="Closing Trades" icon="arrow-left" href="/trading/closing-trades">
    Learn how to close positions and realize profits.
  </Card>

  <Card title="Leverage Guide" icon="scale-balanced" href="/trading/leverage">
    Deep dive into leverage and risk management.
  </Card>
</CardGroup>