Margin trading logic, order types, and other Trader features and mechanics are described in the Understanding Primex section.
Trading features can be classified based on different criteria.
Liquidity source:
Swap and Spot 1x trading - Traders only use their own liquidity.
Margin trading - Traders also use the liquidity borrowed from Credit Buckets.
Order type:
Market orders - a position is opened immediately at the current market price.
Limit orders- a position opening is postponed to when a specific price is reached.
Closing conditions:
Take Profit / Stop Loss - a position is closed automatically if a specific price is reached.
DEX liquidity aggregation:
Router, splitter and selector - choose DEX(s) automatically according to specific rules designed in Primex for the best price discovery.
Long and Short positions
Positions in trading on financial markets are traditionally classified as Long or Short. A trader who opens a long position believes that the price of the corresponding asset will increase and buys this asset. On the other hand, opening a short position means the belief in the price decrease, so the trader sells the asset.
Primex's interface does not make a clear distinction between these two types of trades.
The only difference between Long and Short is the order of the assets. For example, a Long A/B is equivalent to a Short B/A.
If a trader wants to take a long position on BTC/USDC, they would borrow USDC (if using leverage) and purchase BTC with it. Conversely, if a trader wants to open a Short position on BTC/USDC, they would borrow BTC (if using leverage) and sell it for USDC. If the position becomes profitable, the trader will receive their profit in the asset they originally sold.