How Trading Works
Limora operates on a peer-to-peer matching model:The Trader’s Role
Traders are the active participants who speculate on market movements. By opening leveraged positions, you seek to profit from price changes in either direction.| Activity | Role | Reward/Risk |
|---|---|---|
| Open Long | Bet on price increase | Profit if price rises, Loss if falls |
| Open Short | Bet on price decrease | Profit if price falls, Loss if rises |
| Manage Risk | Use Stop-Loss/Take-Profit | Protect capital and secure gains |
Position Types
Long Positions
Open a long position when you believe the asset price will increase.Long Example
Scenario: You believe BTC will rise from $50,000
- Open long with 100 USDC collateral at 10x leverage
- Position size: 1,000 USDC
- If BTC rises 5% to $52,500: You profit ~50 USDC (50% return)
- If BTC falls 5% to $47,500: You lose ~50 USDC (50% loss)
Short Positions
Open a short position when you believe the asset price will decrease.Short Example
Scenario: You believe ETH will fall from $3,000
- Open short with 100 USDC collateral at 5x leverage
- Position size: 500 USDC
- If ETH falls 10% to $2,700: You profit ~50 USDC (50% return)
- If ETH rises 10% to $3,300: You lose ~50 USDC (50% loss)
Key Concepts
Collateral
The amount you deposit to open a position. This serves as your margin and determines your maximum loss (excluding fees).Leverage
The multiplier applied to your collateral to determine your position size.| Leverage | Position Size (on 100 USDC) | Price Move for 100% P&L |
|---|---|---|
| 2x | 200 USDC | 50% |
| 5x | 500 USDC | 20% |
| 10x | 1,000 USDC | 10% |
| 25x | 2,500 USDC | 4% |
| 50x | 5,000 USDC | 2% |
Liquidation Price
The price at which your position will be automatically closed to prevent further losses.Trading Interface
The trading page consists of several key components:Order Form
Where you configure and submit trades:- Trading pair selector: Choose the asset to trade
- Direction toggle: Long or Short
- Collateral input: Amount to use as margin
- Leverage slider: Multiply your exposure
- Stop-loss/Take-profit: Optional risk management
Price Chart
Real-time chart showing:- Current oracle price
- Historical price action
- Your entry and liquidation prices (when in a position)
Position Panel
Displays your active positions with:- Entry price and current price
- Unrealized P&L
- Position size and leverage
- Time held and interest accrued
Trade States
Trades progress through several states:
Additional states:
- Cancelled: Trader cancelled the pending request
- Liquidated: Position closed due to insufficient margin
- Expired: Pending trade not matched within time limit
Available Trading Pairs
| Pair | Max Leverage | Min Collateral |
|---|---|---|
| BTC/USDC | 50x | 10 USDC |
| ETH/USDC | 50x | 10 USDC |
| SOL/USDC | 9x | 10 USDC |
| ARB/USDC | 9x | 10 USDC |
| OP/USDC | 9x | 10 USDC |
Trading pair availability and parameters may change. Check the app for current
offerings.
Best Practices
Start with low leverage
Start with low leverage
Begin with 2-5x leverage to understand the platform before using higher
multipliers. Higher leverage amplifies both gains and losses.
Always use stop-losses
Always use stop-losses
Set a stop-loss on every trade to limit potential losses. This is especially
important for leveraged positions.
Manage position sizing
Manage position sizing
Don’t risk more than 1-5% of your total capital on a single trade. Diversify
your risk across multiple positions.
Monitor open positions
Monitor open positions
Check your positions regularly, especially during volatile market
conditions. Be prepared to act if the market moves against you.
Understand fees
Understand fees
Factor in trading fees and interest costs when calculating potential
profits. Review the fees page for details.