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Trading Basics on Dexetera

This guide covers the fundamental concepts and steps for trading on Dexetera.

Understanding Positions​

What is a Position?​

A position is an active trade you have open on Dexetera. It consists of:

  • Direction: LONG (betting up) or SHORT (betting down)
  • Amount: How much USDC you deposited
  • Entry Price: The price when you opened
  • Current Price: What the price is now
  • Profit/Loss: Your current gain or loss

Example Position:

Bitcoin/USD Futures 2026
Direction: LONG
Amount: 100 USDC
Entry Price: $50,000
Current Price: $55,000
Unrealized P&L: 10 USDC (10%)

LONG vs SHORT Explained​

LONG (Bullish - Betting Price Goes UP)​

You think a price will increase.

How it works:

  • You deposit collateral
  • If price goes UP, you profit
  • If price goes DOWN, you lose

Example:

Action: Open LONG position
Contract: Bitcoin/USD
Entry: $50,000
Amount: 500 USDC
If Bitcoin goes to $55,000:
  Profit: 500 USDC × (5,000/50,000) = 50 USDC ✓

If Bitcoin goes to $45,000:
  Loss: 500 USDC × (-5,000/50,000) = -50 USDC ✗

SHORT (Bearish - Betting Price Goes DOWN)​

You think a price will decrease.

How it works:

  • You deposit collateral
  • You control position in opposite direction
  • If price goes DOWN, you profit
  • If price goes UP, you lose

Example:

Action: Open SHORT position
Contract: Ethereum/USD
Amount: 100 USDC
Entry: $3,000

If Ethereum goes to $2,500:
  Profit: 100 USDC × (500/3,000) = 16.67 USDC ✓

If Ethereum goes to $3,500:
  Loss: 100 USDC × (-500/3,000) = -16.67 USDC ✗

If the price of Ethereum doubles to $6,000, you will be liquidated.

Opening a Position: Step by Step​

Step 1: Choose a Contract​

  1. Open Dexetera website
  2. Browse available contracts
  3. Click on one to view details
  4. Read contract information:
    • Current price
    • Volume (how much is trading)
    • Expiration date

Step 2: Decide Direction and Size​

Ask yourself:

  • Do I think the price will go UP (LONG) or DOWN (SHORT)?
  • How much USDC can I afford to lose?

Example Decision:

"Bitcoin is trending up. I'll go LONG."
"I can afford to lose 50 USDC."

Step 3: Enter Details​

In the trading form, enter:

FieldExample
DirectionLONG
Amount (USDC)50

Step 4: Review Order​

Before confirming, Dexetera shows you:

  • Entry Price: Price you're entering at
  • Position Value: Amount
  • Total Cost: Your deposit + fees
  • Fee: How much you pay

Example Review:

Entry Price: $50,000
Position Value: 150 USDC
Fee: 0.15 USDC
Total Investment: 150 USDC

Managing Your Open Position​

Real-Time Monitoring​

Once open, your position updates in real-time:

  • Entry Price: Where you entered (never changes)
  • Current Price: Live market price
  • Unrealized P&L: Your current profit/loss
  • Return %: Percentage return on investment

Closing a Position​

You can close your position anytime before expiration.

Steps:

  1. Find position in "My Positions"
  2. Click "Close" or "Sell"
  3. Review closing price and fees
  4. Confirm in wallet
  5. Position closes
  6. Profits/losses sent to your wallet

Position Examples​

Example 1: Bitcoin LONG Trade​

Setup:
- Contract: Bitcoin/USD 2026
- Direction: LONG (betting up)
- Entry Price: $50,000
- Amount: 100 USDC

Position Value: 100 USDC

Scenario A - Price goes UP to $55,000:
  Price move: +$5,000 (+10%)
  Your profit: 100 × ($5,000/$50,000) = 10 USDC ✓

Scenario B - Price goes DOWN to $45,000:
  Price move: -$5,000 (-10%)
  Your loss: 100 × (-$5,000/$50,000) = -10 USDC ✗

Example 2: Ethereum SHORT Trade​

Setup:
- Contract: Ethereum/USD 2026
- Direction: SHORT (betting down)
- Entry Price: $3,000
- Amount: 50 USDC

Position Value: 50 USDC

Scenario A - Price goes DOWN to $2,700:
  Price move: -$300 (-10%)
  Your profit: 50 × ($300/$3,000) = 5 USDC ✓

Scenario B - Price goes UP to $3,300:
  Price move: +$300 (+10%)
  Your loss: 50 × (-$300/$3,000) = -5 USDC ✗

Basic Trading Rules​

Risk Management​

  1. Only trade with money you can lose

    • Never use rent or essential money
    • Assume every trade can go to zero

  2. Start small

    • First trade: 10-20 USDC
    • Small losses help you learn without pain

  3. Set stop losses

    • Decide ahead: "If price reaches X, I close"
    • Stick to your plan, don't get emotional

  4. Don't revenge trade

    • Lost 50 USDC? Don't immediately open a 100 USDC trade
    • Take a break, reassess, plan carefully

Trading Discipline​

  • Have a plan before opening: Know your target and stop
  • Set time limits: Don't day-trade 24/7
  • Track your trades: Record every trade to learn
  • Review losses: Why did they happen? How to avoid next time?
  • Celebrate wins: But don't get overconfident

Common Beginner Mistakes​

❌ Revenge trading

  • Lost $100? Don't try to make it back
  • That's how people lose everything

❌ No stop loss

  • "I'll close when I'm down 50% more"
  • Usually you won't. Set automatic stops

❌ Trading on emotions

  • "I know Bitcoin will hit $100k" (gut feeling)
  • Use facts, charts, analysis, not feelings

❌ No plan

  • "I'll see what happens"
  • Have entry price, target profit, stop loss BEFORE opening

❌ Overtrading

  • Open 10 positions at once
  • Can't manage them. Start with 1

Next Steps​

Remember: Practice with small amounts first. Losses are learning opportunities, not failures.