📈Positions and Leverage

A position is your bet on the direction of an asset's price movement within a perpetual futures contract. Essentially, it's your expectation of how the price of the selected asset will change in the future.

📍 Position Types

In perpetual futures trading, there are two main types of positions:

🐂 Long Position: When a trader opens a long position, it means they expect the asset's price to rise in the future. They're betting on an increase and aim to profit from this growth.

🐻 Short Position: A short position is opened when a trader forecasts a decline in the asset's price. This is a bet on falling prices with the goal of earning from the price decrease.

📍 Position Profit and Loss

The main goal of opening a position is to generate profit based on the trader's forecast of price movement. If the market behaves as the trader expected, they can close the position and lock in profit by taking advantage of the price difference between entry and exit points.

📍 What is Leverage

In perpetual futures trading, leverage plays a key role, amplifying both potential profits and risks. Leverage allows traders to control a larger position using less capital. Essentially, it amplifies the impact of price changes on your account. When traders use leverage, they borrow additional funds to increase their investment, thereby gaining greater exposure to the selected asset.

How Leverage Works

For example, if a trader uses 10x leverage, it means they can control a position 10 times larger than their current balance. This can lead to increased profits if the market moves in the right direction, but also significantly increases losses if the market moves against the position. It's important to note that using leverage increases the risk of liquidation, where a trader can lose all their margin due to adverse market movement.

📍 Available Leverage Levels

Upscale offers different leverage levels depending on the category of traded assets and challenge type. This allows you to adapt your strategy to the volatility and risk profile of each market.

🪙 Crypto

Challenge Type	Available Leverage
1-Phase / 2-Phase	x1 — x100
Turbo (Instant Funding)	x1 — x100

Cryptocurrencies offer maximum leverage up to x100 for all challenge types, reflecting high liquidity and 24/7 market operation.

💱 Forex

Challenge Type	Available Leverage
1-Phase / 2-Phase	x1 — x100
Turbo (Instant Funding)	x1 — x30

Currency pairs support high leverage up to x100 for standard challenges and up to x30 for Turbo, accounting for the traditionally lower volatility of currency markets.

🥇 Commodity

Challenge Type	Available Leverage
1-Phase / 2-Phase	x1 — x10
Turbo (Instant Funding)	x1 — x5

Precious metals have more conservative leverage limits — up to x10 for standard challenges and up to x5 for Turbo, which corresponds to the specifics of commodity markets and their lower liquidity.

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⚠️ Important: Leverage selection should match your experience and risk management strategy. Higher leverage amplifies both profits and losses.

📍 Risks and Rewards

Leverage is a balance between potential benefits and increased risk. Traders should be cautious when using it, as it can lead to both significant profits and large losses. To minimize risks, it's recommended to apply risk management strategies and choose leverage levels that match your risk tolerance and experience.

In summary: using leverage in perpetual futures trading allows traders to control larger positions than their initial capital permits. This amplifies both profits and risks, making leverage a powerful tool when used wisely, but potentially destructive if misused. Therefore, it's important for traders to understand all the implications of using leverage and approach this tool with caution.

Opening a Position with Leverage

Opening a position using leverage on Upscale is simple and customizable. Start by choosing a direction: Long if you expect the asset's price to rise, or Short if you anticipate a decline.

Collateral and Leverage

When opening a position, you determine the collateral amount and select the leverage level. These two parameters determine the Position Notional (effective size in USD):

• Position Notional is the total position size you control with leverage. It shows how much you can ultimately control in USD assets, including borrowed funds.

$$Position\ Notional = Collateral * Leverage$$

• Collateral is the amount you provide as security to open a position. This is your own capital that serves as a guarantee for the borrowed funds used in leveraged trading.

The average entry price and position size in turn determine the Position Size (in base asset):

$$Position\ Size = Position\ Notional / Entry\ Price$$

• Position Size is the actual amount of the base asset you control, based on the position notional and entry price.

For example, if a trader chooses 10x leverage with $500 collateral and opens a long on ETH/USDT at $2000, their position notional will be $5000 USDT, and position size — 2.50 ETH.

Opening a Position with Orders

By default, positions are opened using market orders. This order is filled almost instantly at the current market price. Any deviation from the current execution price depends on factors such as price impact or execution delays.

Upscale offers various order types for precise control over position opening conditions. For more detailed information, see the Order Types section.

🏄 With great leverage comes great responsibility — trade wisely to consistently earn profits.