# Open a position

To start trading, go to [Trade](https://cap.finance/#/trade) and connect your wallet with the Arbitrum One network selected.

1. Select a market to trade.

   ![](/files/0AaSxv68ADdPVLxKHilB)
2. Select a base currency. Your margin will be denominated in this currency.

    ![](/files/gp533PKls2rXj2EFr18B)
3. Select leverage. Leverage multiplies your potential profit or loss on the trade.

    ![](/files/xaMxv2uTJ65t6ZDfOngC)
4. Enter a trade size. This is equal to margin × leverage. For example, a trade size of 50 ETH at 50× leverage will use 1 ETH in actual balance (margin) from your wallet.

   ![](/files/sJSe8KO14FTRKuy6IYzM)

   If you think price will rise in the future, open a long. If you think price will fall, open a short.

### Settlement

Once submitted, your order will appear as "Settling" in your positions panel while it is picked up and priced by the dark oracle network (usually a few seconds). 

![](/files/oxKA0lv6pnGdFwNd0wXx)

Once settled, your position's execution price and unrealized profit or loss (P/L) appear.

![](/files/32G6K2gpD4DZrmHWAlfx)

### Funding

As long as your position is open, it will incur funding, which is charged hourly. The hourly funding rate appears on the confirmation screen prior to opening a position.

All P/L numbers shown in your dashboard are already inclusive of all funding charges.

### Profit & Loss 

Here, you opened a 5 ETH position at 4077. If the market rises by 1%, your P/L will equal:

$$
5 ETH \times 1% = 0.05 ETH
$$

Conversely, if the market falls by 1%, your P/L will equal:

$$
5 ETH \times -1% = -0.05 ETH
$$

### Liquidation

If your loss exceeds -80% of the margin tied to the position, the position is liquidated. 

You can choose to avoid liquidation by [adding margin](/trade/add-margin.md) to your position.


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