# Trading Guide

**Connect your wallet**

Connect your web3 wallet to the exchange and make sure it's connected to the official Polynomial trade [**website**](https://trade.polynomial.fi/):

Make sure you are connected to the Optimism mainnet, if not, check how to setup or update the RPC in the dedicated page: [setup-rpc](https://docs.trade.polynomial.fi/perp-v3-beta/perp-v3/setup-rpc "mention").

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## Create smart wallet and deposit into smart wallet

Polynomial trade uses smart contract wallets to access the exchange. Click on create an account and create a Polynomial smart account. Read more on: [smart-wallets](https://docs.trade.polynomial.fi/perp-v3-beta/trade-v2/smart-wallets "mention").

After creating the smart wallet, the trader needs to deposit sUSD to the smart wallet. Complete the transaction and the deposit will be added to the SC wallet.

<figure><img src="https://content.gitbook.com/content/5bkfk6Ou7rJFYDoM6vJH/blobs/xY5iMeWUjGeu0wJGVRxj/sc%20wallet.png" alt=""><figcaption></figcaption></figure>

## Getting sUSD

Polynomial trade is built on top of Synthetix derivatives and uses sUSD as a deposit asset. Traders can get the sUSD from [Polynomial swap](https://swap.polynomial.fi/), and if you don't have funds in Optimism, then follow the steps,

1. Bridge your assets through your fav bridges to Optimism&#x20;

   * <https://portfolio.metamask.io/bridge>
   * [Bungee](https://www.bungee.exchange/)
   * <https://jumper.exchange/>
   * [Hop.Exchange](https://app.hop.exchange/send?token=USDC\&sourceNetwork=ethereum\&destNetwork=arbitrum)

   The transfer of assets may take a few minutes and will be deposited onto your Optimism network upon completion.
2. After bridging your ETH, swap using [Polynomial Swap](https://swap.polynomial.fi/) to sUSD.

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## Add margin

After adding funds to the smart wallet, traders can add [margin](#add-margin) to the respective markets. The minimum margin to start trading is $50, and no max limit exists.

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Click on adjust the margin and add your sUSD to the margin to start trading. You can always add a margin later by clicking adjust margin.

<figure><img src="https://content.gitbook.com/content/5bkfk6Ou7rJFYDoM6vJH/blobs/gGUS7jThCGdgYf7BSsRC/Screenshot%202023-01-30%20at%201.38.31%20PM.png" alt=""><figcaption></figcaption></figure>

## Open a position

### Video Tutorial

{% embed url="<https://drive.google.com/file/d/1COjYgDCvZg6i7mMStVoNayGo9Z6w4gbA/view?usp=sharing>" %}

#### Place an order

Use Long or Short according to your market view and open a position by entering the margin you want to use. Polynomial trade has different types of orders which are [**standard**](https://docs.trade.polynomial.fi/perp-v3-beta/trade-v2/standard-order), [**limit**](https://docs.trade.polynomial.fi/perp-v3-beta/trade-v2/trading-guide/limit-orders), [**stop**](https://docs.trade.polynomial.fi/perp-v3-beta/trade-v2/trading-guide/stop-orders) and [**TP/SL**](https://docs.trade.polynomial.fi/perp-v3-beta/trade-v2/trading-guide/take-profit-stop-loss) order. Select the convenient type order depending on your strategy.

<figure><img src="https://content.gitbook.com/content/5bkfk6Ou7rJFYDoM6vJH/blobs/26AKt5v57PpdUkbnsZBp/12.png" alt=""><figcaption></figcaption></figure>

If it is still unclear how Long and Short trades work, you can refer to the [Basics](https://docs.trade.polynomial.fi/perp-v3-beta/trade-v2/perp/basics-of-perp) section. Once the user has decided on the direction of their trade, they can enter the trading amount and choose the desired [leverage](https://docs.trade.polynomial.fi/perp-v3-beta/trade-v2/perp/leverage). At this point, the fees and keeper deposit will be displayed, and the user can review the fees before opening the position. Clicking on either Long or Short will initiate the position and it will be visible in the position tab.

<figure><img src="https://content.gitbook.com/content/5bkfk6Ou7rJFYDoM6vJH/blobs/rEFZ5YcQhFryYMhlg6Rl/Screenshot%202023-01-30%20at%2012.30.01%20PM.png" alt=""><figcaption></figcaption></figure>

There is also a "[funding rate](https://docs.trade.polynomial.fi/perp-v3-beta/trade-v2/perp/funding-rate)" that is deducted over time as fees.&#x20;

#### Expiry and Price impact

Traders can set the expiry and price impact delta of a new position manually in the UI. It helps the traders to manage their position when there is a huge movement in the market.

Click on the toggle next to the orders type and select the expiry of the Limit order and the Price impact delta for the order.

<figure><img src="https://content.gitbook.com/content/5bkfk6Ou7rJFYDoM6vJH/blobs/s28S03Tv1neYnh2uvgsX/Group%209%20(1).png" alt=""><figcaption></figcaption></figure>

## Managing positions

After opening the position, the trade comes on orders, and the trader can view the position status after the transaction is completed. All the unfilled orders will be kept in the orders tab until they get filled.

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After opening the position, the trade comes on positions, and the trader can manage the trades on this tab. The trader can view the position size, open price, Liquidation price, and PnL on this tab.

<figure><img src="https://content.gitbook.com/content/5bkfk6Ou7rJFYDoM6vJH/blobs/ihZzlujjd4cKh9gVidNw/Screenshot%202023-01-30%20at%201.57.22%20PM.png" alt=""><figcaption></figcaption></figure>

If the trader opens another trade, then the exchange automatically averages both orders, recalculates the PnL and shows it in the position tab.&#x20;

Also, the history tab will allow the traders to view all the trades on the exchange made by the user.

<figure><img src="https://content.gitbook.com/content/5bkfk6Ou7rJFYDoM6vJH/blobs/VKWGPYqC9psEDT2HTVK4/Screenshot%202023-01-30%20at%201.58.55%20PM.png" alt=""><figcaption></figcaption></figure>

## Expired Order

Expired order is a order that has not been filled because high volatility in the market or has reached its expiry time.

<figure><img src="https://content.gitbook.com/content/5bkfk6Ou7rJFYDoM6vJH/blobs/pnrJMfjzogHPz9YD0EcC/image.png" alt=""><figcaption></figcaption></figure>

After an order expires you can decide to:

* Do nothing or cancel the order.
* **`Retry`** the expired transaction, with a 1-click button to reproduce the transaction at market price.
* Create a new order, so the expired order gets cancelled in the same transaction.<br>

## **Closing / Reduce a trade position**

To close a trade position, the user can click **`Close`** or use the TP/SL feature directly in the `Position` tab clicking **`Add`**.

> Check how to add TP/SL to a position here: [#add-tp-sl-to-a-position](https://docs.trade.polynomial.fi/perp-v3-beta/trade-v2/take-profit-stop-loss#add-tp-sl-to-a-position "mention").

<figure><img src="https://content.gitbook.com/content/5bkfk6Ou7rJFYDoM6vJH/blobs/mvSAsL9YRxJorZ85S2pB/Screenshot%202023-06-26%20alle%2018.10.07.png" alt=""><figcaption></figcaption></figure>

When the user click **`Close`** a  popup will appear and user can decide how much of that position close. Once transaction is made, the order will be closed or reduced and PnL will be realised according to the trade outcome.

<figure><img src="https://content.gitbook.com/content/5bkfk6Ou7rJFYDoM6vJH/blobs/AecIMkNRMh1O6CToDd3d/Screenshot%202023-06-26%20alle%2019.50.08.png" alt="" width="307"><figcaption></figcaption></figure>

The profit/loss will be credited to the wallet address after collecting all fees by exchange, and no fees will be deducted from the portfolio after the final transaction.

Users can also close or reduce a position, opening a trade in the opposite direction using any type of order.

## **Liquidations**

When the trader does not have enough funds to meet the margin requirement, which is the amount of collateral that the trader must keep on deposit in order to maintain their open positions. In this case, the exchange will automatically liquidate the trader's positions to bring their account back within the required margin.

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The liquidation price will be shown in the positions tab and if you are using more than 5x leverage, then always try to check the asset underlying price. The more leverage you take, the more chances are there for liquidation due to the volatility in the assets.

If there is any collateral remaining after deducting losses and fees, then the corresponding amount would be returned to your trading account.