# Open a position

To start trading, go to [Trade](https://cap.finance/#/trade) and connect your wallet with the network selected.

1. Select a market to trade.\
   ![](https://2985550535-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FPJCRzTlZ9FzBig6dkBJO%2Fuploads%2F4oWTglyY9tTm71hkfZrC%2Fimage.png?alt=media\&token=653a1699-5766-437a-a0bf-0dae3cacba20)
2. Select a base currency. Your margin will be denominated in this currency.\
   ![](https://2985550535-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FPJCRzTlZ9FzBig6dkBJO%2Fuploads%2FUC7zTmav7jj7jOpS5NQQ%2Fimage.png?alt=media\&token=8f044add-878e-495b-8a9b-98f47335061d)
3. Select leverage. Leverage multiplies your potential profit or loss on the trade.\
   ![](https://2985550535-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FPJCRzTlZ9FzBig6dkBJO%2Fuploads%2Flpbkvows60sXgdxLruYr%2Fimage.png?alt=media\&token=2558ba4b-366a-4f58-a4b2-5edc03cab5c5)
4. Enter a trade size. This is equal to margin × leverage. For example, a trade size of 50 ETH at 50× leverage will use 1 ETH in the actual balance (margin) from your wallet.\
   ![](https://2985550535-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FPJCRzTlZ9FzBig6dkBJO%2Fuploads%2F7NNGGmmbD5ohx8fnJKto%2Fimage.png?alt=media\&token=c0f4e319-b075-4a7b-8d39-641f35e611ca)\
   If you anticipate the price will increase in the future, initiate a long position. If you expect the price will decline, open a short position.

### Settlement

Once submitted, your order will appear as "Settling" in your positions panel while it is picked up and priced by the dark oracle network (usually in a few seconds). 

<figure><img src="https://2985550535-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FPJCRzTlZ9FzBig6dkBJO%2Fuploads%2FRJHrLtqvNYOsYtAqXuJn%2Fimage.png?alt=media&#x26;token=548caa33-8e09-4405-bd3c-69122164ab0f" alt=""><figcaption></figcaption></figure>

Once settled, your position's execution price and unrealized profit or loss (P/L) appear.

<figure><img src="https://2985550535-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FPJCRzTlZ9FzBig6dkBJO%2Fuploads%2F9vgRzyZFe0vuYXotdaBt%2Fimage.png?alt=media&#x26;token=a000376e-3ff7-4d32-bae7-6dfbeac61951" alt=""><figcaption></figcaption></figure>

### Funding

While your position remains open, it will accrue financing fees, which are charged hourly. The hourly financing rate is displayed on the confirmation screen before opening a position.&#x20;

All P/L figures presented in your dashboard already incorporate all financing charges.

### Profit & Loss&#x20;

If you opened a 5 ETH position at 4077. If the market rises by 1%, your P/L will equal:

$$
5\text{eth} \times 1% = 0.05\text{eth}
$$

Conversely, if the market falls by 1%, your P/L will equal:

$$
5\text{eth} \times (-1%) = -0.05\text{eth}
$$

### Liquidation

If your loss exceeds -80% of the margin tied to the position, the position is liquidated.&#x20;

To prevent liquidation, you have the option to supplement your position with additional margin.