> For the complete documentation index, see [llms.txt](https://docs.kwenta.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.kwenta.io/using-kwenta/perennial-isolated-margin/trading-on-perennial/opening-closing-positions.md).

# Opening/Closing Positions

### Opening a position

Opening and closing a position functions similar to any other perps exchange.

<figure><img src="/files/CThrop4jcFWlJhDvCWT0" alt=""><figcaption></figcaption></figure>

* **Trade Type** and whether it is **long (buy) or short (sell)**.
  1. **Market:** To be used to open a trade immediately.
  2. **Limit**: To be used when you want to go long at a lower price than present or to go short if the price reaches a higher price than present.&#x20;
  3. **Stop:** To be used when you want to go long if the price reaches a higher price than present (breakup) or to go short if the price reaches a lower price than present (breakdown).&#x20;

{% hint style="info" %}
Conditional orders execute at an exact price, if the price reaches the condition. Fill may slightly vary depending on the Oracle price at the time the order execution is complete.
{% endhint %}

* **Collateral:** Maximum amount you are risking if you are liquidated. Your collateral to open your planned trade.
* **Leverage/Positions Size:** Traders can either pick a leverage multiplier or set their position size changes in one field will always correspond with changes in the other.
* **Your Stop Loss and Take Profit.** You are not obligated to use a stop loss, but this allows you to set up the entire trade before submitting an order.

### Closing an open position

{% hint style="info" %}
Closing an open position if all margin is exhausted or the trader doesn't have enough margin to reserve to execute the trade, the close has to be done through the `close position` modal by selecting `close` on the positions table on an open position.
{% endhint %}

<figure><img src="/files/6niAQGO2kEpuNhjo3W6s" alt=""><figcaption></figcaption></figure>

Traders can only close a position by opening the opposite direction of the current trade only if they have sufficient margin for the order to reserve for execution.