To trade cryptocurrencies on margin, go to the instruments panel and select ‘Perpetuals’. Currently, the Bitcoin perpetual is available to trade with more cryptocurrency perpetuals to be added in the near future.
Interdax’s perpetual contracts offer up to 100:1 leverage when trading cryptocurrencies.
On the Interdax platform, leverage is implicit. Your leverage is based on the position size and the funds you have in your trading account. For instance, if you have 1 BTC in your trading account and the price of bitcoin is $10,000, you can enter a position of 100,000 contracts on BTC-PERP. In this case, you are applying x10 leverage. If you enter a position of 200,000 contracts, your leverage would be approximately x20.
Once you’ve selected the perpetual contract you want to trade, you can use the order panel to go long or short and adjust the quantity to increase the size of the position. For limit orders, you can also set the limit price at which the order is triggered.
Suppose you buy 81,130 BTC-PERP contracts at a market price of $8,113. Your leveraged long position will then appear in the position tab with various details including the entry price, mark price, liquidation price and leverage.
Since the value of the position is roughly 10 BTC and the initial balance in the sub-account was 1 BTC, the leverage for this position is x10.08, highlighted above.
Your position size will be shown in green if you are long, while it will be red if you are short.
The mark price is the value of the derivatives contract based on an index comprising the most liquid exchanges for bitcoin in the case of BTC-PERP. The margin column shows the maintenance margin. Your available margin is displayed in the Browser panel’s ‘Margin’ tab.
The liquidation price shows the market price at which your maintenance margin is depleted and your trade will be closed at this price. The more leverage you use, the closer the liquidation price will be to your entry price.
The realised profit and loss (PnL) is the profit (or loss) from your leveraged position. The return on equity (ROE%) shows the profits/losses as a percentage of the used margin for that trade.
You can use limit orders to set a take profit level or exit at the market price by clicking on ‘Market’ using the positions tab. To set a limit order to sell at $9,200, go to your open position, enter 9,200.0 in the grey box and click on ‘Close’.
Your limit order will appear in the 'Active Orders' tab and is triggered once the market price hits $9,200, exiting your long position.
Once the trade is closed, your profits (or losses) will be settled in the perpetual’s underlying cryptocurrency, e.g., your profits will be paid in BTC for BTC-PERP.