Tradoor
Tradoor Mini App User Guide
Tradoor Mini App User Guide
  • 👋Outline
  • 💱HOW TO TRADE ON TRADOOR
    • 🤔How do I make my first trade on Tradoor?
    • ⚙️How do I set up my wallet to start trading on Tradoor?
    • 💰How do I add funds to my Telegram wallet?
    • 📊Trading Perps 101
      • 🤔What is Perps Trading?
      • 🧭How to navigate Tradoor's Perps Trading Page
        • What does "Symbol" mean?
        • What does "Index Price" mean?
        • What does "24h" change mean?
        • What does "Open Interest" mean?
        • What does "Long/Short Rate" mean?
        • What does "1h Funding" and "1h Rollover" mean?
        • What does "Max Leverage" and "Average Leverage" mean?
        • What does "Available Liquidity" mean?
        • What does the Perps price chart mean?
        • What do the "long" and "short" button mean?
      • 🥇How do I make my first trade in Perps?
        • (1) Select between "Market Order" and "Limit Order"
        • (2) Enter the amount you would like to trade with
        • (3) Select the leverage you would like to trade with
        • (4) Have a look at your position
        • (5) Select your TP/SL
      • 🤑How do I make a profitable trade in Perps?
    • 📈Trading Options 101
      • 🧐What is Options Trading?
      • 🗺️How to navigate Tradoor's Classic Options Page
        • What does "Symbol" mean?
        • What does "Expiry" mean?
        • What does "Strike Price" mean?
        • What does the "Options Price Chart" mean?
        • What do "Call" and "Put" mean?
        • What do "Positions" and "History" mean?
      • ☝️How do I make my first Classic Options trade?
      • 🚸How to navigate Tradoor's DNT Options Page
        • What does "Symbol" mean?
        • What does "Expiry" mean?
        • What does "Strike Price" mean?
        • What does "Trigger" mean?
        • What do "Double No Touch Odds" mean?
        • What does the "Options Price Chart" mean?
        • What do "Positions" and "History" mean?
      • 🏆How do I make my first DNT Options trade?
      • 💰How do I make a profitable trade in Options?
      • 🎟️How do I use my Options Voucher?
  • ⚡Turbo Mode on Tradoor
    • ❔What is Turbo Mode?
    • 🌩️How do I start trading with Turbo Mode?
    • ✏️FAQs about Turbo Mode
  • 🌊ADD LIQUIDITY ON TRADOOR
    • 👀What is liquidity?
    • ❔Why add liquidity?
    • 🚰How to add liquidity to pools?
  • ❔Frequently Asked Questions
  • 🌟EARN REWARDS ON TRADOOR
    • 🎁What are $DOOR points?
    • 📊Earn rewards by trading
    • 👯Earn rewards by referring friends
    • 🏁Earn rewards by completing tasks
    • 🐂Earn rewards by feeding Sausage
  • 🤝GET CONNECTED ON TRADOOR
    • 👋How do I get connected on Tradoor?
  • 🛠️OTHERS
    • 🔮Oracle Data
Powered by GitBook
On this page
  • FAQs:
  • Step Three: Select the leverage you would like to trade with
  1. HOW TO TRADE ON TRADOOR
  2. Trading Perps 101
  3. How do I make my first trade in Perps?

(3) Select the leverage you would like to trade with

Previous(2) Enter the amount you would like to trade withNext(4) Have a look at your position

Last updated 6 months ago

FAQs:


Step Three: Select the leverage you would like to trade with

What is leverage? Leverage refers to the ability to control a larger position size than the amount of capital you have available in your trading account. It allows traders to amplify their potential profits (and losses) by using borrowed funds.

Key Concepts of Leverage

  1. Amplification of Exposure: Example: If you have $1,000 and use 10x leverage, you can control a position worth $10,000. This means you’re able to trade with 10 times your actual capital.

  2. Margin Requirement: The margin is the amount of your own capital required to open a leveraged position. For 10x leverage, your margin would be 10% of the total position size. In the example above, to open a $10,000 position, you would need to set aside $1,000 as margin.

  3. Potential for Higher Returns: If the market moves in your favour, leverage can significantly amplify your profits. For instance, a 10% increase in the asset price could yield a 100% return on your initial investment if using 10x leverage.

  4. Increased Risk: While leverage can enhance profits, it also increases risk. A small adverse price movement can lead to significant losses. If the market moves against your position, you may face liquidation, where your position is automatically closed to prevent further losses. More about this in the “liquidation” section.

  5. Liquidation: If your losses reach a certain point, the platform may automatically close your position to recover the borrowed funds. This occurs when the equity in your account falls below the required margin.


Importance of Leverage in Trading

  • Trading Strategies: Leverage allows traders to employ various strategies, including speculation on price movements and hedging against potential losses in other positions.

  • Market Sentiment: High leverage levels in the market can indicate trader confidence, while low levels may suggest caution.


How much leverage should I start with if it's my first time trading?

If it’s your first time trading, we recommend starting with lower leverages below 25x to minimise risk.

💱
📊
🥇
What is leverage?
Key Concepts of Leverage
What is the importance of leverage in trading?
How much leverage should I start with if it's my first time trading?