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Tutorial: Decentralized Leveraged Trading on gTrade

Ready to discover how the future of leveraged trading feels? Let’s get started!

Before anything, you need to approve your DAI for the trading smart contract so that you can open trades using your web wallet.

1. Opening Your First Trade

Visit https://gains.trade/decentralized-trading/
Please click on the “Approve” button and confirm the transaction in Metamask.

Once it’s done:

  1. Select the pair you want to trade on (left panel) → we support 45+ cryptos and 10 forex pairs.
  2. Select long or short (long → win when price goes up, short → win when price goes down)
  3. Select the order type: market, limit or stop order (more details on this in next sections).
  4. Select your leverage → multiplies price moves (eg. 10x leverage → 10% move = you win 100%, liquidated at -9% price move = 90% loss)
  5. Select your collateral size — how much you want to risk (eg. 10% profit on 50 DAI collateral→ 5 DAI but on 5,000 DAI collateral → 500 DAI). 1500 is the minimum position size with leverage included (eg. 100 DAI with 15x leverage = 100 *15 = 1500)
  6. Select your stop loss (closes a trade automatically past a loss threshold eg. at -20% PnL) → you can use no stop loss but your trade will be liquidated (lose whole collateral) if it reaches a -90% loss.
  7. Select your take profit (closes a trade automatically past a profit threshold eg. at +20% PnL) → an automatic take profit is set at 900% anyway because it is currently the max profit allowed on a trade.
  8. Open your trade by clicking on the button at the bottom of the right panel!

Note: Forex pairs are only open during the week (from Sunday 9 PM UTC to Friday 9 PM UTC)

Opening your first trade. (e.g. 30x leverage, 50 DAI, Market Short, -25% Stop Loss, +50% Take Profit)

After a few seconds, a notification will show to confirm your trade was opened. You will also be able to see it in “your open trades” below the chart.

Notice the “Your Open Trades” section below the chart.

2. Managing Your Open Trades

First, you will see all your open trades on all pairs in the “Your open trades” section.

Long/Short — Pair — Leverage — Collateral — Open price — Current price — Liquidation price or Stop loss — Take profit — Profit/Loss — Close

Then, if you click on the trade (everywhere but on LIQ/SL and TP prices), it will open a window showing the full details. You will also be able to share your trade from there.

Note: trades profits shown are always after deducting the closing fees.

If you click on your trade liquidation price / stop loss or take profit, it will open a window that lets you update your take profit / stop loss values.

Tip: You can put your Stop Loss in a profit so you at least win …%.

You can also move your stop losses and take profits directly on the chart by dragging them.

Note: To hide your trades from the chart, please click on the checkbox at the right of “Display on chart”.

Finally, to close a trade, you can simply click on the cross in the right corner.

3. Using Limit Orders to Open Trades

You can change the order type in the trading panel on the right to “Limit”, choose a price, and click on “Limit Long” or “Limit Short” to place a limit order.

This limit order will open your long/short trade once the price you set has been reached.

You can see all your open limit orders in “Your Open Orders” on the right.

As for open trades, you can click on a limit order to see its full details:

You can cancel a limit order and get the DAI from the collateral back to your wallet (without fees) by clicking the cross at the right corner.

4. Using Stop Orders

A stop order is an order to buy or sell an asset at the market price once the asset has traded at or through a specified price (the “stop price”).

When making a “Stop Long” trade, you need to set a price that is greater than or equal to the market price of your selected asset. If you set the order correctly, you will see “STOP LONG” in green at the bottom of the order.

When making a “Stop Short” trade, you need to set a price that is at or lower than the market price of your selected asset. You will see “STOP SHORT” in red and “ORDER READY” if you set the order correctly.

Error Example & Resolution

If you try to set a “Stop Long” at a price lower than the market price, you will get the following message:

“WRONG STOP PRICE.”

Message when STOP Order is used incorrectly.

To resolve this error in this scenario, you can do a few things depending on your strategy.

You can change the order to a “Stop Short.” Now you are using the Stop Order correctly for a short position since you set a price lower than the market price. Your order will wait until it reaches the price so that you can profit off of the downwards momentum with your short.

Notice how the “STOP SHORT” is all red with “ORDER READY’ right above it. This is a correctly placed order.

YOUR OTHER OPTION is to change the order type to “Limit Long” if you are still wanting to long from a price lower than the market price. In this example, the $1.60 long entry into $MATIC would be lower than the market price at the time of this screenshot.

Notice how it says “LIMIT LONG” with a green square and “ORDER READY” above it. This is a correctly placed order for this scenario.

5. Monitoring your trading history and performance

You can view the trading history for the whole platform, your personal trading history, the leaderboard, and your personal trading report at the bottom of the page.

You can switch between “MY TRADES” and “ALL TRADES” using the button at the top of the trading history.

Thanks for reading our guide on trading on gTrade!

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Gains Network develops gTrade  —  the decentralized leveraged trading platform on Polygon. There are more products to come.

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