> For the complete documentation index, see [llms.txt](https://docs.upscale.trade/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.upscale.trade/trade-mechanics/positions_and_leverage.md). # 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 a chosen 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 are betting on an increase and aim to profit from this growth. **🐻 Short Position:** A short position is opened when a trader predicts a decline in the asset's price. This is a bet on the price falling with the goal of profiting from the decrease. ## Profit and Loss on Positions The main goal of opening a position is to make a 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 the 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. **How Leverage Works** For example, if a trader uses 5x leverage, this means they can control a position 5 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 goes against the position. It's important to note that using leverage increases the risk of [liquidation](/trade-mechanics/liquidations.md), when a trader can lose their entire margin due to unfavorable market movement. ## Available Leverage Levels At Upscale, leverage levels depend on the challenge type and asset category: ### Crypto | **Challenge Type** | **Available Leverage** | | ------------------------ | ---------------------- | | Basic (all phases) | 1:5 | | Accelerated (all phases) | 1:5 | | Turbo (Instant Funding) | 1:2 | ### RWA (Real World Assets) | **Category** | **Basic / Accelerated (phases 1, 2)** | **Turbo (Instant Funding)** | | ------------ | ------------------------------------- | --------------------------- | | Commodities | 1:10 | 1:5 | | Indices | 1:15 | 1:5 | | Forex | 1:100 | 1:30 | ⚠️ **Important:** Your choice of leverage should align with your experience level and risk management strategy. ## Risks and Rewards **Leverage** is a balance between possible benefits and increased risk. Traders should be careful 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 level 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 if used wisely, but potentially destructive if misused. Therefore, it's important for traders to understand all the consequences of using leverage and approach this tool with caution. ### Opening a Position with Leverage Opening a position using leverage at 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 size and choose 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 the use of borrowed funds. $$ Position;Notional = Collateral \times Leverage $$ * **Collateral** is the amount you deposit 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): $$ Position;Size = Position;Notional \div Entry;Price $$ * **Position Size** is the actual quantity of the base asset you control, based on the position notional and entry price. For example, if a trader chooses 5x leverage with $500 collateral and opens a long on ETH/USDT at $2000, their **position notional** will be $2500 USDT, and **position size** will be 1.25 ETH. ### Opening Positions 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 fine-tuning the conditions for opening a position. For more detailed information, see the [Order Types](/trade-mechanics/order_types.md) section. ## Opening a Position by Asset Volume You can open a position or increase an existing one not only by collateral amount in USD, but also by asset volume. For example, instead of an amount in USD you can specify a volume: `0.1 BTC`, `2 ETH`, `100 SOL`. A volume-based order is always filled only for the full specified volume. The mode is available for the following orders: * Market * Limit * Stop Market * Stop Limit ### How to Choose the Mode The position form lets you choose between two modes: * by collateral amount in USD; * by asset volume. The terminal remembers the last selected mode. ### How It Works When you specify an asset volume, the system calculates the amount required to create and fill the order. The calculation includes: * collateral based on the selected leverage; * the fee for opening or increasing the position; * a reserve for a possible change in the spread. This amount is temporarily reserved from your free balance. Once the order is filled, the unused part of the reserve is returned to your balance. If the order is cancelled or not filled, the reserved amount is returned in full. ### Expected Execution Amount **Expected Execution Amount** is the amount expected to be required to fill the order at the current moment. It is calculated using the current price or the order price, depending on the order type. The minimum position volume must be equivalent to at least **10 USD** at the expected execution price. ### Reserved Amount **Reserved Amount** is the amount that will be temporarily reserved from your free balance. Reserved Amount can be larger than Expected Execution Amount, as it includes an additional reserve for the spread. If market conditions change, the actual amount required for execution may change as well. If the reserved amount turns out to be insufficient, the order may be cancelled. ### Possible Errors **Insufficient balance for the reserve** If the free balance is not enough to create the order including the reserve, the terminal will not allow the order to be created. Reduce the position volume or increase the leverage. **Insufficient reserve for execution** If the order was created but the spread increased significantly by the time of execution, the reserved amount may not be enough. In this case the order will not be filled and will be cancelled. **Volume exceeds available liquidity** If the specified volume is too large for the current market conditions, the order cannot be created. Reduce the position volume and try again. ## Trade Indicators on Chart The chart for each asset displays indicators that show executed trading operations — opening, averaging, closing, and liquidation of positions. This allows you to visually track your trade history directly on the price chart. ### Indicator Types **🟢 BUY Indicator** — a green circle with an upward arrow. Displayed for the following operations: * Open Long — opening a long position * Increase Long — averaging a long position * Close Short — closing a short position * Liquidation Short — liquidation of a short position **🔴 SELL Indicator** — a red circle with a downward arrow. Displayed for the following operations: * Open Short — opening a short position * Increase Short — averaging a short position * Close Long — closing a long position * Liquidation Long — liquidation of a long position ### Candle Binding The indicator is displayed on the candle during which the operation was executed. If multiple operations of the same type occurred on a single candle, each one is displayed as a separate indicator. ### Operation Details Hovering over an indicator (on mobile — by tap) reveals a tooltip with a list of operations executed on that candle. Operations are sorted from newest to oldest and include: * Operation type and direction * Executed order volume and asset ticker * Execution price **Example for BUY indicator:** `Close Short 1,223.5 ADA $0.234443` `Increase Long 32,000 ADA $0.22` **Example for SELL indicator:** `Open Short 0.11123 BTC $68,400` `Liq. Long 0.23345 BTC $64,902.3` --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. 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