How to close positions in AscendEX margin trading

To close a margin position on AscendEX, navigate to the Margin Trading interface, select the desired position, calculate its settlement value, check for margin call risk, enter the closing price and quantity, submit the order, and confirm the closure.

Nov 24, 2024 at 06:27 pm

How to Close Positions in AscendEX Margin Trading

Margin trading allows traders to amplify their profits by borrowing funds from the exchange, known as leverage. However, it's crucial to understand how to close positions effectively to minimize risks and optimize returns.

Steps to Close Margin Positions on AscendEX

1. Navigate to the Margin Trading Interface

• Log in to your AscendEX account and hover over "Trade" in the top-right corner.
• Select "Margin" from the drop-down menu.
• A new page will load, displaying your open margin positions.

2. Select the Position to Close

• Identify the margin position you wish to close.
• Note the trading pair, position direction (long or short), and the loaned amount.

3. Calculate the Position Settlement Value

• The Position Settlement Value (PSV) represents the value of your position at the current market price.
• PSV = (Entry Price Position Size) - (Leverage Loaned Amount)

4. Check for Margin Call or Liquidation Risk

• AscendEX calculates your "Risk Level" to gauge your risk of being liquidated.
• A Risk Level of 100% or below indicates minimal risk.
• If your Risk Level exceeds 100%, you may be facing a margin call or liquidation.

5. Close the Margin Position

• Select the "Close" button corresponding to the position you wish to close.
• Enter the desired closing price and the quantity you want to sell or buy to close the position.
• Ensure your closing price aligns with the current market conditions to avoid losses.

6. Submit the Closing Order

• Click the "Close" button to submit your closing order.
• Wait for the order to be processed and executed.

7. Confirm Position Closure

• Once the order is executed, the position will be closed, and the borrowed funds will be returned to your margin wallet.
• Check your "Positions" tab to verify that the position has been successfully closed.

8. Monitor Market Conditions

• Track market fluctuations and adjust your margin trading strategies accordingly.
• Close positions promptly when market conditions turn unfavorable to minimize losses or preserve profits.