ποΈββοΈLeverage
Pinnako Leverage Trading: A Structured Guide
Introduction
Pinnako is a decentralized exchange enabling trading without the requirement of a username or password. It utilizes an aggregated price feed to minimize the risk of liquidations due to temporary price spikes.
Opening a Position
Choose either a "Long" or "Short" position based on your expectations of the token's price movement. Profits and losses are influenced by the token's price movement:
A Long position makes a profit if the token's price rises but incurs a loss if it decreases.
A Short position earns a profit if the token's price drops but incurs a loss if it rises.
Enter the desired amount and leverage after selecting your position. For instance, with 0.1 Ethereum (ETH) valued at 352.33 USD and 5x leverage, you can open a long position worth 1,752.89 USD. The system displays the "Entry Price," "Liquidation Price," and "Exit Price," which adjusts according to the token's price.
Fees
A 0.1% trading fee is charged when opening and closing positions. Additionally, there is an hourly "Borrow Fee" that varies based on utilization, shown below the swap box.
Trade Execution and Management
Trades do not impact prices directly; however, slippage can occur due to price fluctuations between trade submission and blockchain confirmation. You can customize the slippage settings by clicking on the icon next to your address.
After opening a trade, monitor it under your Positions list. Leverage and liquidation prices can be managed by clicking "Edit" to deposit or withdraw collateral. Please note that when depositing collateral, the USD value is fixed based on the time of deposit, regardless of changes in the collateral's price.
Profits and losses are proportional to the position size. For example, if ETH price changes by 10%, the position will either gain or lose 175.29 USD, depending on whether it's a long or short position.
Leverage is displayed as (position size)/(position collateral) and can be customized.
When depositing collateral into a long position, a 0.3% swap fee applies to prevent deposits from being used as zero-fee swaps. This does not apply to short positions. There are no fees for withdrawing collateral.
Closing a Position
Positions can be closed partially or entirely by clicking "Close." Profits for long positions are paid in the asset being traded, while short positions receive profits in the stablecoin used to open the position.
Stop-loss and take-profit orders can be set by selecting the "Trigger" tab under the "Close" button. After creating a trigger order, it appears in your position's row and the "Orders" tab. The trigger price can be edited if necessary. Manual cancellation is required if you close a position manually and want to cancel associated trigger orders.
Please note that orders are not guaranteed to execute in certain situations, and trigger orders are market orders without guaranteed execution at the trigger price.
Liquidation
The Liquidation Price is the point where the position is automatically closed due to losses nearing the collateral amount. This value changes over time, especially when using high leverage, so it's crucial to monitor it. Any remaining collateral, after losses and fees are deducted, is returned to your account.
Market Prices and Transactions
Pinnako trades do not impact prices, allowing for large trades at the marked price. However, a small spread exists for entering and exiting trades due to the protocol serving as the counter-party. Mark prices are displayed next to the market name, and their averages are shown on the chartβ.
Opening, closing, or editing a position involves two transactions: the user's request and the execution by position tracker bots. The cost of the second transaction, the "Execution Fee," is paid to the blockchain network and is displayed in the confirmation box.
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