📈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, 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 section.

📍 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