#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. Your close size does not move the execution price on Exolane. 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 oracle timing — Final settlement uses the next valid oracle update, not the quote at click time
5. Keep gas buffer — Ensure you have ETH for the transaction

#Next Steps