#Closing Positions

This guide covers how to close positions and understand the settlement process.

#Closing a Full Position

To completely exit a position:

#Steps:

1. Find your position in the positions panel
2. Click "Close Position" or "Close"
3. Review the estimated PnL
4. Confirm the transaction

#What happens:

1. Your position size is set to 0
2. PnL is calculated at the settlement price
3. PnL is added to (or subtracted from) your collateral
4. Collateral is freed for withdrawal or new trades

#Closing a Partial Position

To close only part of a position:

#Steps:

1. Open the trade panel for that market
2. Enter a smaller size than your current position
3. Submit the order

#Example:

Current Position: 0.5 BTC long
Action: Set size to 0.2 BTC
Result: 
  - Close 0.3 BTC
  - Realize PnL on 0.3 BTC
  - Remaining: 0.2 BTC long

Partial closes realize proportional PnL:

• If closing 60% of position → realize 60% of current PnL
• Remaining position maintains original entry price

#Closing via Limit Order

Instead of closing at market price:

1. Select "Limit Order"
2. Enter your desired exit price
3. Submit the order
4. Order executes when price is reached

#For Longs (profit target above entry):

Entry: $100,000
Limit Close: $105,000

#For Shorts (profit target below entry):

Entry: $100,000
Limit Close: $95,000

#Automatic Closes

Positions may close automatically through:

#Stop-Loss

If you've set a stop-loss and price reaches that level:

• Position closes automatically
• Helps limit losses

#Take-Profit

If you've set a take-profit and price reaches that level:

• Position closes automatically
• Locks in profits

#Liquidation

If your margin falls below maintenance requirements:

• Position is closed by liquidators
• See Liquidations for details

#Settlement Process

When you close a position:

#Why oracle settlement?

The close price is determined by the next valid oracle update, not the price at submission time. This prevents:

• Front-running
• Price manipulation
• Stale price exploitation

#Understanding Your Close

When closing, review:

#Closing Fees

When closing a position:

#Example:

Closing 0.1 BTC at $100,000
Position value: $10,000
Trading fee: $10,000 × 0.02% = $2

#PnL Calculation

#Long Position PnL:

PnL = Size × (Exit Price - Entry Price)

#Short Position PnL:

PnL = Size × (Entry Price - Exit Price)

#Example (Long):

Entry: 0.1 BTC at $100,000
Exit: 0.1 BTC at $110,000

PnL = 0.1 × ($110,000 - $100,000) = $1,000 profit

#Example (Short):

Entry: 0.1 BTC at $100,000
Exit: 0.1 BTC at $90,000

PnL = 0.1 × ($100,000 - $90,000) = $1,000 profit

#After Closing

Once your position is closed:

1. PnL Applied — Profit added or loss subtracted from collateral
2. Collateral Freed — Available for withdrawal or new trades
3. Funding Stops — No more funding payments for this position
4. Position Removed — No longer appears in open positions

#Withdrawing After Close

After closing positions, you can withdraw your USDC:

1. Go to your account/wallet section
2. Click "Withdraw"
3. Enter amount (up to available balance)
4. Confirm transaction

USDC is sent directly to your wallet.

#Cancel Pending Close

If you've submitted a close order but it hasn't settled:

1. Click "Cancel" on the pending order
2. Confirm the cancellation
3. Your position remains open

#Best Practices

1. Review before confirming — Double-check PnL and fees
2. Use limit orders for precision — If exact exit price matters
3. Set stop-losses early — Don't rely on manual closing in volatile markets
4. Account for slippage — Settlement price may differ from displayed price
5. Keep gas buffer — Ensure you have ETH for the transaction

#Next Steps