To trade cryptocurrencies with leverage, go to the instruments panel and select ‘Perpetuals’.
Currently, the Bitcoin perpetual (BTC-PERP) is available to trade with more cryptocurrency perpetuals to be added in the near future.
Interdax’s perpetual contracts offer up to 100x 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. As the mark price changes and causes a change in the position value, so does your leverage.
Submitting an Order
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/decrease the size of the position. For limit orders, you can also set the limit price at which the order is triggered.
Orders will appear in the bottom tab 'Orders' (or 'Stops').
To submit orders, you must have enough in your account to meet the initial margin requirements.
Managing a Position
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 realised PnL is the profit (or loss) from your leveraged position and is calculated using fill prices and the mark price for open positions. You can check fill prices on the Order History page. The return on equity (ROE%) shows the profits/losses as a percentage of the used margin for that trade.
The liquidation price shows the market price at which your maintenance margin is depleted and your trade will be closed at this price.
You can check your trading fees and interest payments on the Transaction History page. Since funding is continuous, interest payments are totalled up and debited or credited each day. For more information about funding payments, see this article.
Exiting a Position
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. You can check the Transaction History page to see the fees, executed quantity and price.