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

# Open Position

You can open  your position with following instructions.

## Open Position  

#### <mark style="color:purple;">1.  Select Market</mark>&#x20;

Select the market or underlying asset you want to trade.

#### <mark style="color:purple;">**2. Before opening a position, you**</mark><mark style="color:purple;">**&#x20;**</mark>*<mark style="color:purple;">**must**</mark>*<mark style="color:purple;">**&#x20;**</mark><mark style="color:purple;">**first decide on 'Long' or 'Short' side.**</mark>

1. **Buy / Long Position**

* You buy an asset expecting its price to rise. You can make a profit if the price goes up.
* If the token price goes down, you lose your money.

2. **Sell / Short Position**

* You bet an asset's price will fall. You can make a profit if the price goes down.
* If the token price goes up, you lose your money.

#### <mark style="color:purple;">**3. Select Order Type**</mark>

* **Select the Order Type(Market Order / Limit Order)** <br>
  * **Market Order  :** A market order is executed immediately at the current market price on a Perp DEX that provides liquidity.<br>
  * **Limit Order :** A limit order sets a specific price for Long / Short, executing only when the market meets that price on Perp DEX that provides liquidity. \
    \
    Note: If it hits outside your slippage tolerance, the order won't execute.

#### <mark style="color:purple;">**4. Select Collateral, Position size using Leverage.**</mark>&#x20;

Set the collateral amount and leverage once you decide which side to trade.

1. "Select quantity of tokens for collateral."
2. "Choose your leverage, which will then set the position size."

#### <mark style="color:purple;">**Leverage:**</mark>

* **Leverage** refers to borrowing extra funds to increase trade size and potentially amplify your profits.
* For example, using 10x leverage means trading ten times more than your initial collateral. DVX supports 50x leverage trading now.
* Using leverage can boost profits and increase the risk of significant losses and possible liquidation if the market turns against your position, so it's essential to use it cautiously.

#### <mark style="color:purple;">**5. Review your Order & Open Position**</mark><br>

After clicking the ‘Order’ button, a transaction approve button will appear in your wallet. Click 'Approve' to open the position.