# Trade Perpetuals

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**Overtime is live**. Trade perpetuals with zero fees, earn up to 5% cash back on margin, and compete for a share of up to $5M in prizes. [Learn more about Overtime](https://docs.defi.app/knowledge-base/trade-and-earn/overtime).
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Perpetuals contracts ("perps") let you trade on crypto price movements without owning the tokens. They don’t expire, so you can hold positions as long as you maintain their margin requirements.

## Considerations

* Perpetuals trading is available only in some regions. Restricted regions, including the US, are blocked from making trades.
* Trading with leverage amplifies gains and losses, and exposes your account balance to the risk of **liquidation**.

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**Liquidation**

If a drop in price in your leveraged positions puts you in danger of losses that exceed your account balance, Defi App protects you by selling automatically.
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## Key Features

* **Leverage:** Multiply your exposure for higher potential gains and losses.
* **Funding Rates:** Automatic payments between longs and shorts keep perpetuals close to token prices.
* **No Expiry:** Hold positions indefinitely without rolling them over.
* **Streamlined UX:** An advanced perpetuals dashboard along with Defi App's core features, like gasless transactions and wallet abstraction, keep you focused on trading.

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## **Trade Fee**

Defi App charges <code class="expression">space.vars.PERPS\_FEE</code> of the notional value of each perpetual trade.

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## How It Works

How perpetuals trading works on Defi App, from start to finish:

### Fund Your Perpetuals Account

Your perpetuals account balance is kept in another wallet. This protects assets that you don't specifically allocate to perps trading from being liquidated. You can easily transfer funds to your perps account from your other Defi App wallets.

### Make a Trade

Using funds in your perpetuals account, you can take a [long ](#user-content-fn-1)[^1]or short[^2] position on any supported token.&#x20;

You can leverage your position for greater exposure. This amplifies gains and losses.

### Manage Your Positions

Track your open trades in real time from the **Perps** dashboard. Adjust leverage or close your position at any time.

The price of a perp follows the token’s spot price. If it drifts too far, a small funding payment helps bring it back. When the perp price is higher than spot, longs pay shorts. When it’s lower, shorts pay longs.

Your positions each display a **Liquidation Price** (a value at which your positions are closed to cover losses). Avoid liquidation with trading tools like [TP ](#user-content-fn-3)[^3]and SL[^4] prices.

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## Position Configuration Options

<table><thead><tr><th width="128">Setting</th><th width="194">Configuration options</th><th>Description</th></tr></thead><tbody><tr><td>Order Mode</td><td><strong>Market</strong>, <strong>Limit</strong>, or <strong>TWAP</strong></td><td><ul><li><strong>Market</strong> orders are executed immediately at the best available price.</li><li><strong>Limit</strong> orders allow you to set a specific price at which your trade is triggered.</li><li><a data-footnote-ref href="#user-content-fn-5"><strong>TWAP</strong> </a>orders allow you to break a larger order down into smaller trades over time.</li></ul><p><strong>Market</strong> by default.</p></td></tr><tr><td>Asset</td><td>Select a token pair.</td><td>Select a token. Tokens are always paired with and display their current price in <a data-footnote-ref href="#user-content-fn-6">USD</a>. </td></tr><tr><td>Amount</td><td><strong>Token</strong> or <strong>USD.</strong> Enter an amount.</td><td><p>The amount of the selected asset to trade. </p><p>Toggle between <strong>Token</strong> and <strong>USD</strong> by clicking the icon below the amount you enter.<br>You can also use the slider below the selected asset to adjust the amount based on your total holdings of that asset.</p></td></tr><tr><td>Leverage</td><td>1-40x, depending on asset.</td><td>Leverage increases your exposure to the price movements of an asset.</td></tr><tr><td><a data-footnote-ref href="#user-content-fn-7">TP/SL</a> Toggle</td><td><strong>On</strong> or <strong>Off</strong></td><td><p>Set prices at which to close this position:</p><ul><li>Take Profit is the increased price at which you want to automatically close for a profit.</li><li>Stop Loss is the decreased price at which you want to automatically close to cut your losses.</li></ul><p><strong>Off</strong> by default.</p></td></tr><tr><td>Reduce-only</td><td><strong>Checked</strong> or <strong>Unchecked</strong></td><td><p>When <strong>checked</strong>, the trade not create a new position, regardless of its size. It will only offset or reduce your existing position.</p><p><strong>Unchecked</strong> by default.</p></td></tr><tr><td>Liquidation price</td><td>-</td><td>Calculated based on your trade configuration.<br>The price at which your position is automatically closed because margin is no longer sufficient to cover losses.</td></tr><tr><td>Available to trade</td><td>-</td><td>The amount, in USD, that your perpetuals account has available.</td></tr><tr><td>Margin required</td><td>-</td><td><p>Calculated based on your trade configuration.</p><p>The collateral (USD amount) you must set aside to open and maintain a position, based on size and leverage.</p></td></tr><tr><td>Order value</td><td>-</td><td>Calculated based on your trade configuration.<br>The value of the order, in USD, after applying leverage.</td></tr><tr><td>Slippage</td><td>Set a percentage value.</td><td>Slippage tolerance is the percent difference allowed between the quoted price and the execution price.<br><strong>1%</strong> by default.</td></tr><tr><td>Margin mode</td><td><strong>Cross</strong> or <strong>Isolated</strong></td><td><ul><li><strong>Cross</strong> margin positions share the same cross margin collateral. If liquidated, your cross margin and other open positions may be lost.</li><li><strong>Isolated</strong> margin positions limit risk to your portfolio by capping margin for this position. Your isolated position is liquidated if it hits its individual margin ratio. You can adjust the margin.</li></ul><p><strong>Cross</strong> by default.</p></td></tr><tr><td>Order type</td><td><strong>GTC</strong> or <strong>AOC</strong></td><td><ul><li>Good-til-canceled orders stay open until filled or cancelled.</li><li>All-or-cancel orders fill only if the entire order can execute immediately, otherwise the order will be canceled.</li></ul><p><strong>GTC</strong> by default.</p></td></tr></tbody></table>

[^1]: bet on the price going up

[^2]: bet on the price going down

[^3]: take profit

[^4]: stop loss

[^5]: Time-Weighted Average Price

[^6]: United States Dollars

[^7]: Take Profit / Stop Loss