The Add Position function allows traders to increase their exposure to an existing position by purchasing more of the same asset at the current market price.
How Does Add Position Work?
When you add to an existing position:
- The total position size increases.
- The average entry price adjusts based on the price of the newly added position.
- The required margin increases to maintain the new position size.
- The liquidation price is recalculated, taking into account the new average entry price and updated margin.
Example of Adding to a Position
Initial Position Setup:
- Direction: Long
- Entry Price: 90,000 USDT
- Leverage: 10x
- Initial Margin: 9,000
- Maintenance Margin Rate (MMR): 0.5%
- Maintenance Margin: 450 USDT
- Position Size: 1 BTC
- Position Value: 90,000 USDT
- Liquidation Price: 81,450 USDT
Step 1: Adding 1 BTC to the Current Position
- Current market price: 91,000 USDT
- New order: 1 BTC at 91,000 USDT
Step 2: Updated Position Details
- New Position Size:
Total position = 1 BTC (existing) + 1 BTC (new) = 2 BTC
Total value = (1 × 90,000) + (1 × 91,000) = 181,000 USDT - New Average Entry Price:
Average Entry Price = Total Value ÷ Total Quantity
(90,000 + 91,000) / 2 = 90,500 USDT - Updated Initial Margin:
Initial Margin = Total Position Value / Leverage
181,000 / 10 = 18,100 USDT - Maintenance Margin:
Maintenance Margin = Position Value × MMR
181,000 x 0.5% = 905 USDT - Updated Liquidation Price:
Using the formula for Long Liquidation Price:
Liquidation Price = Average Entry Price - [(Initial Margin - Maintenance Margin) / Position Size]
Liquidation Price = 90,500 - [(18,100 - 905) / 2] = 81902.5 USDT
How to Add Position
- Tap on the [Market] Tab
- In the Flipster interface, find and tap on the [Market] tab. This is where you can view and select the different types of markets available to trade, including perpetual contracts.
- Once you’re in the Market section, tap on [Perpetual] to access the perpetual trading options. This is where you can manage your open positions and leverage.
- Look for the trading pair that you currently have an open position in. For example, if you have an open position in BTCUSDT, locate and select that specific pair to proceed with the leverage adjustment.
- Tap on [Add Position] Under [Open Positions]
- Under the Open Positions section, find the position for which you want to add position. Tap on the [Add Position] option under your open position.
- Specify the Margin to Add
- Input the margin amount you wish to add to your position.
- Note: The position value will be automatically calculated based on your current leverage setting.
- Ensure you have sufficient funds in your account to proceed.
- Tap [Review] to check the updated details of your position, including:
- Estimated total value
- Estimated liquidation price
- Estimated entry price
- Input the margin amount you wish to add to your position.
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Confirm the Order
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After reviewing the details, tap [Place Order] to finalize the addition to your position.
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Your new position size will be reflected under the [Open Positions] section.
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