3. Open a Position
Last updated
Last updated
Traders can place orders to open Long and Short positions on any of the Horizon Futures Trade markets using one of the available order types: Market, Limit, Stop. The process of placing an order requires a series of steps that must be fulfilled with attention before confirming the transaction. Each step implies setting a parameter that may impact the outcome of the trade.
Users deposit zUSD margin into the Account Manager that can be used to place different orders. Each time a user wants to place an order, they must first decide the portion of the available margin that will be used.
This can be done either by manually entering a specific number, or by selecting a percentage of the total available margin. Once the order is placed, the zUSD margin will be in use and unavailable until the position is closed.
Once the trader has decided the Margin to be used for a position, the next step is to set the Leverage and the Order Size. These two parameters are directly connected, which means that modifying one parameter will automatically modify the other.
To set the Order Size, traders can manually input the size of the order or the leverage to be used. Additionally, there is a convenient slide bar that can be used to modify the leverage.
Horizon Futures Trader allows users to create positions with up to 50x leverage. This means that the Order Size can be as large as 50 times the size of the margin. Setting a leverage higher than 1x will impact the effect of price movements accordingly resulting in a more volatile change in profit and loss, and a higher risk of liquidation. RISK WARNING: Please consider carefully the use of leverage in your trades according to your risk management strategy.
Stop Loss and Take Profit orders allow to automate the closure of a position when certain parameters are met. Click on the "Take Profit / Stop Loss" checkbox to open the paramaters settings.
Take Profit will be triggered when a certain percentage of profit is met due to the market price moving in a direction favorable to the trade. The trigger price can be set either by selecting one of the preset percentages ranging from +5% to +100%, or by manually typing the numbers. Stop-loss will be triggered when a certain percentage of loss is met due to the market price moving in the opposite direction of the trade. The trigger price can be set either by selecting one of the preset percentages ranging from -2% to -50%, or by manually typing the numbers Considerations:
Only 1 of each Take Profit and Stop Loss can be created for each Order.
If either Take Profit or Stop Loss is executed automatically, the other has to be manually closed.
If a Position is manually closed, related Take Profit and Stop Loss Orders will be canceled.
Once the user has set all necessary parameters, a final review is recommended before placing the order. The User Interface helps to pre-visualize the order to be created and a detailed breakdown of the involved fees.
Use the Place Order button and confirm by approving the transaction in your wallet to create an order.
The outcome of this action will be reflected in the Position dashboard under the chart of each market.
Pending Orders / Manually Execute Orders in Horizon Futures are executed by a keeper contract powered by Gelato. Users can decide to manually execute the order. This action will require approval and payment of gas for the additional transaction.
Now you know how to open a position on Horizon Futures! Time to learn about how a position can be closed.
