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
- Leverage: How much bigger your position is (1x to max available)
- 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
Leverage: 5x
Entry Price: $50,000
Current Price: $51,000
Unrealized P&L: +$100 (before fees)
LONG vs SHORT Explained
LONG (Bullish - Betting Price Goes UP)
You think a price will increase.
How it works:
- You deposit collateral
- You control 5x more value (with 5x leverage)
- If price goes UP, you profit
- If price goes DOWN, you lose
Example:
Action: Open LONG position
Contract: Bitcoin/USD
Amount: 100 USDC at 5x leverage
Entry: $50,000
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 ✗
Your 100 USDC deposit is at risk of liquidation
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: 50 USDC at 2x leverage
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 ✗
Leverage Explained (Simple Version)
What Leverage Does
Leverage multiplies your position size, but also your profits AND losses.
Leverage Examples
1x Leverage (No Leverage)
Deposit: 100 USDC
Position Value: 100 USDC
If price moves 10%:
Profit/Loss: 10 USDC (10% of position)
Liquidation: Never (no leverage)
5x Leverage
Deposit: 100 USDC
Position Value: 500 USDC (100 × 5)
If price moves 10%:
Profit/Loss: 50 USDC (10% of 500 USDC)
Liquidation: If price moves 20% against you
Loss: 100 USDC (entire deposit lost)
10x Leverage
Deposit: 100 USDC
Position Value: 1000 USDC (100 × 10)
If price moves 10%:
Profit/Loss: 100 USDC (10% of 1000 USDC)
Liquidation: If price moves just 10% against you
Loss: 100 USDC (entire deposit lost)
The Leverage Rule of Thumb
Higher leverage = Higher profit potential BUT lower price movement tolerance
- 1x: Safe but slow profits
- 2-3x: Balanced risk and reward
- 5x+: Aggressive (for experienced traders)
- 10x+: Extremely risky (can liquidate quickly)
For beginners: Start with 1x or 2x leverage.
Opening a Position: Step by Step
Step 1: Choose a Contract
- Open Dexetera website
- Browse available contracts
- Click on one to view details
- Read contract information:
- Current price
- Volume (how much is trading)
- Expiration date
- Available leverage
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?
- What leverage level am I comfortable with?
Example Decision:
"Bitcoin is trending up. I'll go LONG."
"I can afford to lose 50 USDC."
"I'll use 3x leverage for moderate risk."
Step 3: Enter Details
In the trading form, enter:
| Field | Example |
|---|---|
| Direction | LONG |
| Amount (USDC) | 50 |
| Leverage | 3x |
| Estimated Fee | 0.15 USDC |
Step 4: Review Order
Before confirming, Dexetera shows you:
- Entry Price: Price you're entering at
- Position Value: Amount × Leverage
- Liquidation Price: Price where you get liquidated
- Max Profit (optional): How much you could make
- Total Cost: Your deposit + fees
- Fee: How much you pay
Example Review:
Entry Price: $50,000
Position Value: 150 USDC (50 × 3x)
Liquidation Price: $48,333
Maximum Profit (if target hit): $100 USDC
Fee: 0.15 USDC
Total Investment: 50 USDC
Step 5: Approve Transaction
- Click "Open Position" or "Confirm"
- Your wallet shows a transaction approval
- Click "Confirm" in wallet
- Wait for blockchain confirmation (10-30 seconds on Arbitrum)
Position is now OPEN and actively monitoring the price.
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:
- Find position in "My Positions"
- Click "Close" or "Sell"
- Review closing price and fees
- Confirm in wallet
- Position closes
- Profits/losses sent to your wallet
Example Close:
Opened LONG at $50,000 with 50 USDC
Close at $51,000
Gross Profit: $50 × (1,000/50,000) = 1 USDC
Less Fees: 0.25 USDC
Net Profit: 0.75 USDC
Wallet receives: 50.75 USDC
Watching for Liquidation
Your position shows liquidation price (the price that triggers automatic closure).
Warning signs:
- Liquidation price is very close to current price
- Your P&L is deeply negative (red)
- System shows "At Risk" warning
What to do:
- Close position immediately to preserve remaining funds
- Don't wait for liquidation
- Or deposit more USDC to raise liquidation price (if available)
Position Examples
Example 1: Bitcoin LONG Trade
Setup:
- Contract: Bitcoin/USD 2026
- Direction: LONG (betting up)
- Entry Price: $50,000
- Amount: 100 USDC
- Leverage: 5x
Position Value: 100 × 5 = 500 USDC
Scenario A - Price goes UP to $52,000:
Price move: +$2,000
Your profit: 500 × ($2,000/$50,000) = 20 USDC
Less fees (0.3): 19.7 USDC profit ✓
Scenario B - Price goes DOWN to $48,000:
Price move: -$2,000
Your loss: 500 × (-$2,000/$50,000) = -20 USDC
Plus fees: -20.3 USDC total
Remaining: 79.7 USDC
Scenario C - Price goes DOWN to $45,000:
Price move: -$5,000
Your loss: 500 × (-$5,000/$50,000) = -50 USDC
Liquidation price: ~$45,000
Position LIQUIDATED
Total loss: 100 USDC (entire deposit)
Example 2: Ethereum SHORT Trade
Setup:
- Contract: Ethereum/USD 2026
- Direction: SHORT (betting down)
- Entry Price: $3,000
- Amount: 50 USDC
- Leverage: 2x
Position Value: 50 × 2 = 100 USDC
Scenario A - Price goes DOWN to $2,750:
Price move: -$250
Your profit: 100 × ($250/$3,000) = 8.33 USDC
Less fees: 8 USDC profit ✓
Scenario B - Price goes UP to $3,200:
Price move: +$200
Your loss: 100 × (-$200/$3,000) = -6.67 USDC
Plus fees: -7 USDC total
Scenario C - Price goes UP to $3,500:
Price move: +$500
Your loss: 100 × (-$500/$3,000) = -16.67 USDC
Liquidation triggered
Total loss: 50 USDC (entire deposit)
Basic Trading Rules
Risk Management
-
Only trade with money you can lose
- Never use rent or essential money
- Assume every trade can go to zero
-
Start small
- First trade: 10-20 USDC
- Small losses help you learn without pain
-
Use low leverage initially
- Begin with 1x or 2x
- Increase only after profiting consistently
-
Set stop losses
- Decide ahead: "If price reaches X, I close"
- Stick to your plan, don't get emotional
-
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
❌ Too much leverage
- 10x leverage blows up accounts fast
- Start with 1-3x
❌ Revenge trading
- Lost $100? Don't try to make it back with 10x leverage
- 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 1-2 max
Next Steps
- Learn about contracts: Understanding Contracts
- Understand risks: Risk & Liquidation
- Know your fees: Fees & Pricing
Remember: Practice with small amounts first. Losses are learning opportunities, not failures.