> For the complete documentation index, see [llms.txt](https://docs.cap.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.cap.finance/trade/open-a-position.md).

# 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.

   ![](https://2086947085-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FiCsgWRyje4pqs2WheOD3%2Fuploads%2FlNYLsWzZww81g486kObP%2FScreen%20Shot%202021-11-19%20at%209.29.31%20AM.png?alt=media\&token=c110dcc9-8181-4c5b-8d6c-f3658569065f)
2. Select a base currency. Your margin will be denominated in this currency.

    ![](https://2086947085-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FiCsgWRyje4pqs2WheOD3%2Fuploads%2F0xyXpOyZKjjYHcX75Eon%2FScreen%20Shot%202021-11-19%20at%209.31.11%20AM.png?alt=media\&token=a904160d-3d3c-4121-a40b-4ad2e73d4263)
3. Select leverage. Leverage multiplies your potential profit or loss on the trade.

    ![](https://2086947085-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FiCsgWRyje4pqs2WheOD3%2Fuploads%2FpG1hNVCoL50tFyqixxdv%2FScreen%20Shot%202021-11-19%20at%209.32.54%20AM.png?alt=media\&token=dff12d9d-55b4-46e7-a730-0f53e97fa711)
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.

   ![](https://2086947085-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FiCsgWRyje4pqs2WheOD3%2Fuploads%2F5Iw9dlSiMSePFkrJIh8l%2FScreen%20Shot%202021-11-19%20at%209.36.32%20AM.png?alt=media\&token=38c14bec-20bc-4eae-897c-09aa7d583e60)

   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). 

![](https://2086947085-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FiCsgWRyje4pqs2WheOD3%2Fuploads%2FA58vc3kFPZEuOaIBdLHa%2FScreen%20Shot%202021-11-19%20at%209.43.55%20AM.png?alt=media\&token=fdffde15-a394-4eda-b874-5eec4084c015)

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

![](https://2086947085-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FiCsgWRyje4pqs2WheOD3%2Fuploads%2F6bZqlQTzPZbzQs6p9sYX%2FScreen%20Shot%202021-11-19%20at%209.46.42%20AM.png?alt=media\&token=4c4f6e81-c9a7-41b6-afb4-1f22f799b931)

### 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.