Complete Trading Guide

This comprehensive guide covers all aspects of trading on Polynomial Trade, from basic position management to advanced risk management techniques.

Table of Contents

1. Opening and Closing Positions

2. Order Types and Execution

3. Risk Management

4. Leverage Management

5. Cross-Margin Trading

6. Avoiding Liquidation

7. VIP Program

8. Trading Referral Program

Opening and Closing Positions

Prerequisites

• Connected wallet with USDC deposited

• Understanding of trading basics

• Basic knowledge of position types

Opening Positions

Step 1: Choose a Market

1. Go to Polynomial Trade

2. Select a market from the list (e.g., BTC-PERP, ETH-PERP)

3. Review market information:

   • Current price

   • 24h change

   • Volume

   • Open interest

Step 2: Select Position Type

Long Position (Bullish)

• When to Use: Expecting price to rise

• How it Works: Buy low, sell high

• Risk: Limited to your margin

• Reward: Unlimited upside potential

Short Position (Bearish)

• When to Use: Expecting price to fall

• How it Works: Sell high, buy low

• Risk: Limited to your margin

• Reward: Profit from price decline

Step 3: Set Position Parameters

Position Size

• Enter the amount of USDC you want to use as margin

• This is your collateral, not your total position size

• Start small for beginners ($10-50)

Leverage

• Choose your leverage multiplier (1x to 50x)

• Beginners: Start with 1x-3x leverage

• Higher leverage: Higher risk and potential reward

• Maximum: 50x leverage available

Order Type

• Market Order: Executes immediately at current price

• Limit Order: Executes only at your specified price

• TP/SL Order: Includes take-profit and stop-loss

Step 4: Review and Execute

1. Review all position details:

   • Market and direction

   • Position size and leverage

   • Fees and keeper deposit

   • Liquidation price

2. Click "Long" or "Short" to execute

3. Confirm the transaction in your wallet

Managing Open Positions

Position Overview

After opening a position, you can view:

• Entry Price: Price at which you entered

• Current Price: Current market price

• Position Size: Size of your position

• Unrealized P&L: Current profit/loss

• Liquidation Price: Price at which you'll be liquidated

Position Management Options

Add to Position

1. Go to the Positions tab

2. Click on your existing position

3. Select "Add to Position"

4. Enter additional margin amount

5. Confirm the transaction

Reduce Position

1. Go to the Positions tab

2. Click on your position

3. Select "Reduce Position"

4. Enter the amount to reduce

5. Confirm the transaction

Closing Positions

Step 1: Access Your Position

1. Go to the Positions tab

2. Find the position you want to close

3. Click on the position to view details

Step 2: Choose Closing Method

Market Close

• Execution: Immediate at current market price

• Use Case: Quick exit from position

• Risk: Price may move against you

Limit Close

• Execution: Only at your specified price

• Use Case: Better price execution

• Risk: May not execute if price doesn't reach target

Step 3: Execute Close

1. Select your closing method

2. Review the closing details:

   • Closing price

   • Realized P&L

   • Fees

3. Click "Close Position"

4. Confirm the transaction

Order Types and Execution

Limit Orders

Limit orders allow you to specify the exact price at which you want your trade to be executed. Unlike market orders that execute immediately at the current price, limit orders only execute when the market reaches your specified price.

Key Benefits

• Price Control: Execute at your desired price

• Better Execution: Avoid slippage from market orders

• Risk Management: Set precise entry and exit points

• Patience: Wait for better prices without monitoring

Types of Limit Orders

Buy Limit Orders

• Purpose: Buy at a lower price than current market

• Use Case: Entering long positions on dips

• Execution: Only executes when price drops to your limit

Sell Limit Orders

• Purpose: Sell at a higher price than current market

• Use Case: Taking profits or entering short positions

• Execution: Only executes when price rises to your limit

Setting Limit Orders

Step 1: Choose Your Market

1. Go to Polynomial Trade

2. Select the market you want to trade

3. Review current price and market conditions

Step 2: Select Limit Order Type

1. In the order panel, select "Limit" order type

2. Choose "Buy" or "Sell" based on your strategy

3. Set your position parameters

Step 3: Set Order Parameters

Limit Price

• Enter your desired execution price

• Buy Limit: Set below current market price

• Sell Limit: Set above current market price

• Precision: Use appropriate decimal places

Position Size

• Enter the amount of USDC for margin

• This determines your position size

• Consider your risk tolerance

Leverage

• Choose your leverage multiplier

• Beginners: Start with 1x-5x leverage

• Advanced: Use higher leverage with caution

Step 4: Review and Place Order

1. Review all order details:

   • Market and direction

   • Limit price

   • Position size and leverage

   • Fees and keeper deposit

2. Click "Place Order"

3. Confirm the transaction in your wallet

Stop Market Orders

Stop market orders are conditional orders that convert to market orders when a specified stop price is reached. They're primarily used for risk management and breakout trading strategies.

Key Characteristics

• Conditional Execution: Only execute when stop price is hit

• Market Execution: Convert to market order when triggered

• Price Protection: Protect against adverse price movements

• Breakout Trading: Enter positions on price breakouts

Types of Stop Market Orders

Stop-Loss Orders

• Purpose: Limit losses on existing positions

• Direction: Opposite to your position direction

• Use Case: Risk management for open positions

• Execution: Triggers when price moves against you

Stop-Entry Orders

• Purpose: Enter positions on price breakouts

• Direction: Same as desired position direction

• Use Case: Breakout trading strategies

• Execution: Triggers when price breaks key levels

Setting Stop Market Orders

Step 1: Choose Your Market

1. Go to Polynomial Trade

2. Select the market you want to trade

3. Review current price and market conditions

4. Identify key support/resistance levels

Step 2: Select Stop Market Order

1. In the order panel, select "Stop Market" order type

2. Choose "Buy" or "Sell" based on your strategy

3. Set your order parameters

Step 3: Set Order Parameters

Stop Price

• For Stop-Loss: Set below current price for longs, above for shorts

• For Stop-Entry: Set above current price for longs, below for shorts

• Key Levels: Use support/resistance levels

• Buffer: Add small buffer to avoid false triggers

Position Size

• Enter the amount of USDC for margin

• Consider your risk tolerance

• Account for potential slippage

• Plan for worst-case scenarios

Leverage

• Choose appropriate leverage

• Beginners: Start with 1x-5x leverage

• Advanced: Use higher leverage with caution

• Risk Management: Consider leverage impact on risk

Step 4: Review and Place Order

1. Review all order details:

   • Stop price and trigger conditions

   • Position size and leverage

   • Fees and execution details

   • Risk parameters

2. Click "Place Order"

3. Confirm the transaction in your wallet

Take-Profit and Stop-Loss Orders

Take-profit and stop-loss orders are essential risk management tools that automatically close your positions at predetermined price levels.

Take-Profit (TP) Orders

• Purpose: Automatically close position at profit target

• Use Case: Secure profits without manual monitoring

• Execution: Closes position when price reaches target

• Benefit: Guarantees profit at desired level

Stop-Loss (SL) Orders

• Purpose: Automatically close position at loss limit

• Use Case: Limit downside risk

• Execution: Closes position when price hits stop level

• Benefit: Prevents large losses

Setting TP/SL Orders

Step 1: Access Your Position

1. Go to Polynomial Trade

2. Navigate to the Positions tab

3. Find your open position

4. Click on the position to view details

Step 2: Choose Order Type

1. Select "TP/SL Order" from the order types

2. Choose your position direction (Long/Short)

3. Set your order parameters

Step 3: Set Take-Profit Price

For Long Positions

• Set TP price above your entry price

• Example: Entry at $50,000, TP at $55,000

• Calculation: Target profit = (TP - Entry) × Position Size

For Short Positions

• Set TP price below your entry price

• Example: Entry at $50,000, TP at $45,000

• Calculation: Target profit = (Entry - TP) × Position Size

Step 4: Set Stop-Loss Price

For Long Positions

• Set SL price below your entry price

• Example: Entry at $50,000, SL at $47,500

• Calculation: Maximum loss = (Entry - SL) × Position Size

For Short Positions

• Set SL price above your entry price

• Example: Entry at $50,000, SL at $52,500

• Calculation: Maximum loss = (SL - Entry) × Position Size

Step 5: Review and Confirm

1. Review all order details:

   • Take-profit price and potential profit

   • Stop-loss price and maximum loss

   • Risk-reward ratio

   • Fees and execution details

2. Click "Place Order"

3. Confirm the transaction in your wallet

Risk Management

Position Sizing

Risk Per Trade

• Conservative: Risk only 1-2% of account balance per trade

• Maximum Position: 10-20% of account balance

• Diversification: Don't put all capital in one position

Risk-Reward Ratio

• 1:2 Ratio: Risk $1 to make $2

• 1:3 Ratio: Risk $1 to make $3

• Minimum: Aim for at least 1:1.5 ratio

• Calculation: (TP - Entry) / (Entry - SL)

Stop-Loss Strategies

Fixed Stop-Loss

• Method: Set stop at fixed percentage below entry

• Example: 5% stop-loss on long position

• Advantages: Simple and consistent

• Disadvantages: May not account for volatility

Technical Stop-Loss

• Method: Set stop at technical levels

• Example: Below support level for longs

• Advantages: Accounts for market structure

• Disadvantages: Requires technical analysis

Trailing Stop-Loss

• Method: Stop follows price in favorable direction

• Example: 3% trailing stop on profitable position

• Advantages: Locks in profits while allowing upside

• Disadvantages: May exit too early in trends

Take-Profit Strategies

Fixed Take-Profit

• Method: Set profit target at fixed percentage

• Example: 10% take-profit on long position

• Advantages: Simple and consistent

• Disadvantages: May not capture full trend

Technical Take-Profit

• Method: Set profit target at technical levels

• Example: At resistance level for longs

• Advantages: Based on market structure

• Disadvantages: Requires technical analysis

Partial Take-Profit

• Method: Close portion of position at targets

• Example: Close 50% at first target, 50% at second

• Advantages: Reduces risk while maintaining exposure

• Disadvantages: More complex management

Leverage Management

What is Leverage?

Leverage allows you to control a larger position size with a smaller amount of capital. It amplifies both potential profits and losses, making it a powerful but risky tool.

How Leverage Works

• Position Size: Leverage multiplies your position size

• Margin Requirement: You only need a fraction of the position value as margin

• Profit Amplification: Profits are multiplied by leverage amount

• Loss Amplification: Losses are also multiplied by leverage amount

Example

• Capital: $1,000

• Leverage: 10x

• Position Size: $10,000

• 10% Price Move: Results in 100% profit/loss on your capital

Leverage Options on Polynomial

Available Leverage

• Minimum: 1x (no leverage)

• Maximum: 50x

• Common Ranges: 1x-5x (conservative), 5x-20x (moderate), 20x-50x (aggressive)

• Adjustable: Can be changed for each position

Choosing Appropriate Leverage

For Beginners (1x-5x)

• Risk Level: Low to moderate

• Learning Phase: Good for learning the platform

• Capital Preservation: Focus on capital preservation

• Gradual Increase: Can increase as experience grows

For Intermediate (5x-20x)

• Risk Level: Moderate to high

• Experience Required: Need trading experience

• Risk Management: Must have good risk management

• Market Knowledge: Should understand market dynamics

For Advanced (20x-50x)

• Risk Level: Very high

• Expert Level: Only for experienced traders

• Risk Management: Must have excellent risk management

• Market Timing: Requires precise market timing

Leverage Management Strategies

Conservative Approach

• Low Leverage: Use 1x-3x leverage

• Capital Preservation: Focus on preserving capital

• Gradual Growth: Aim for steady, consistent growth

• Risk Control: Maintain strict risk control

Moderate Approach

• Medium Leverage: Use 5x-15x leverage

• Balanced Risk: Balance risk and reward

• Market Analysis: Use technical and fundamental analysis

• Position Sizing: Size positions appropriately

Aggressive Approach

• High Leverage: Use 20x-50x leverage

• High Risk/Reward: Accept high risk for high reward

• Expert Level: Only for expert traders

• Strict Management: Requires strict risk management

Cross-Margin Trading

What is Cross Margin?

Cross-margin uses your entire account balance as collateral for all open positions, allowing you to maximize capital efficiency and manage risk across your entire portfolio.

Key Benefits

• Capital Efficiency: Use entire account balance as collateral

• Risk Distribution: Spread risk across all positions

• Flexibility: Easy to manage multiple positions

• Lower Margin Requirements: Reduced overall margin needs

How It Works

• Unified Collateral: All positions share the same margin pool

• Dynamic Allocation: Margin automatically adjusts based on position sizes

• Real-time Updates: Margin requirements update continuously

• Portfolio View: See all positions and their combined impact

Setting Up Cross Margin

Step 1: Access Trading Interface

1. Go to Polynomial Trade

2. Connect your wallet

3. Navigate to the trading interface

4. Verify cross-margin is enabled (default setting)

Step 2: Understand Your Account

1. Total Equity: View your total account balance

2. Used Margin: See margin currently in use

3. Available Margin: See margin available for new positions

4. Margin Ratio: Monitor your margin utilization

Cross Margin Strategies

Portfolio Diversification

• Multiple Markets: Trade across different markets

• Uncorrelated Positions: Use uncorrelated positions

• Risk Distribution: Distribute risk across positions

• Capital Efficiency: Maximize capital efficiency

Hedging Strategies

• Long/Short Pairs: Hedge positions with opposite trades

• Market Neutral: Create market-neutral strategies

• Risk Reduction: Use hedging to reduce overall risk

• Profit Optimization: Optimize risk-adjusted returns

Dynamic Rebalancing

• Performance Based: Adjust based on position performance

• Risk Based: Rebalance based on risk metrics

• Market Based: Adjust based on market conditions

• Systematic: Use systematic rebalancing rules

Avoiding Liquidation

What is Liquidation?

Liquidation occurs when your margin balance falls below the required maintenance margin level. When this happens, your position is automatically closed to protect the system and other users.

Liquidation Process

• Trigger: Margin falls below maintenance level

• Automatic: Position is automatically closed

• Partial Recovery: Any remaining margin is returned

• Fees: Liquidation fees are charged

Why Liquidation Happens

• Insufficient Margin: Not enough margin to cover losses

• High Leverage: Using too much leverage

• Market Volatility: Adverse price movements

• Poor Risk Management: Lack of proper risk management

Understanding Liquidation Risk

Liquidation Price

• Calculation: Based on your entry price, leverage, and margin

• Monitoring: Always know your liquidation price

• Updates: Liquidation price updates with position changes

• Safety Buffer: Maintain buffer above liquidation price

Margin Requirements

• Initial Margin: Required to open position

• Maintenance Margin: Required to keep position open

• Margin Call: Warning when margin is low

• Liquidation: Automatic closure when margin is insufficient

Liquidation Prevention Strategies

1. Proper Position Sizing

• Risk Per Trade: Risk only 1-2% of account per trade

• Account Protection: Protect account from large losses

• Leverage Consideration: Consider leverage impact on position size

• Diversification: Don't concentrate risk in one position

2. Appropriate Leverage

• Start Low: Begin with low leverage (1x-5x)

• Gradual Increase: Increase leverage as experience grows

• Risk Assessment: Assess risk tolerance before using high leverage

• Market Conditions: Adjust leverage for market conditions

3. Stop-Loss Orders

• Always Use Stops: Never trade without stop-loss orders

• Logical Placement: Place stops at logical technical levels

• Regular Review: Review and adjust stops regularly

• Trailing Stops: Use trailing stops to lock in profits

4. Margin Management

• Adequate Margin: Keep sufficient margin in account

• Margin Monitoring: Monitor margin levels regularly

• Additional Funds: Have additional funds available

• Emergency Plans: Have plans for margin emergencies

Emergency Procedures

When Liquidation Risk is High

1. Assess Situation: Quickly assess the situation

2. Reduce Leverage: Reduce leverage if possible

3. Close Positions: Close some positions to free margin

4. Add Margin: Add more margin to account

5. Use Stops: Ensure stop-loss orders are in place

Margin Call Response

1. Immediate Action: Take immediate action

2. Add Funds: Add funds to account if possible

3. Reduce Risk: Reduce risk by closing positions

4. Emergency Plans: Execute emergency plans

5. Contact Support: Contact support if needed

VIP Program

The Polynomial VIP Program rewards our most dedicated traders with exceptional fee discounts. Based on your 30-day trading volume on Polynomial Trade, you can achieve VIP tiers with fees as low as 0/1.5 bps at the highest tier.

How the VIP Program Works

Our VIP program is all about rewarding trading volume. With nine tiers ranging from Normie to Whale, each level comes with progressively lower fees. Here's how you can climb the ladder:

1. Live tracking: Your trading volume is tracked over a rolling 30-day period. The more you trade, the more you level up!

2. Automatic Upgrades: As soon as you hit the volume requirement for a new tier, you'll instantly unlock the corresponding fee discounts.

3. Benefit from Lower Fees: Fee reductions happen in real-time, giving you immediate access to savings as soon as you reach a new level.

Polynomial VIP Levels and Fee Structure

The standard Normie trader pays the regular fees of 4 bps for maker and 6 bps for taker trades. But with our new VIP program, high-volume traders can enjoy significant savings. Whale traders, for instance, can trade at incredibly low fees, thanks to the benefits of the VIP tiers.

Trading Referral Program

Polynomial's trading referral program rewards you for bringing new users to the platform. With a powerful 3-tier system, you earn not just from your direct invites - but also from their network.

Rewards Structure

Key Benefits

• 🔁 Lifetime rewards - Earn forever from your network

• 💎 Trading Points sharing - Earn 20% of L1 referrals' Trading Points

• 💰 USDC payouts - All rewards paid in USDC

• 🎁 Trader discounts - Referrals get up to 40% discount on trading fees

• 🚫 No caps - Unlimited earning potential

How Rewards Work

Example: You invite Alice, who trades $10,000,000 and pays $5,000 in trading fees.

• Alice (L1) → You earn:

  • $500 (10% of fees)

  • 20% of the Trading Points she earns

• Alice invites Bob, who pays $5,000 in fees → You earn $100 (2%)

• Bob invites Charlie, who pays $5,000 in fees → You earn $50 (1%)

Total earnings: $650 USDC + Trading Points

How to Get Started

Step 1: Generate Your Referral Link

1. Navigate to the Referral Page in your Polynomial Trade account

2. Copy your unique referral link

3. Note your referral code for easy sharing

Step 2: Share the Link

• Social Media: Share on Twitter, Discord, Telegram

• Content Creation: Include in articles, videos, blogs

• Direct Sharing: Send to friends and network

• Community Engagement: Share in relevant communities

Note: Traders who use your link get up to 40% off on fees when they sign up.

Step 3: Track Referrals

• See who signed up through your link

• Monitor their trading activity

• Track your total rewards

• View detailed analytics

1. Watch the Video 🎥 Quick walkthrough below 👇

Claiming Rewards

Reward Distribution

• See total earnings and withdrawable amount on the Referral page

• USDC payouts to your Polynomial Wallet

• Minimum balance of $10 required to withdraw

• Daily updates at 1 PM UTC - withdraw anytime

Withdrawal Process

1. Check your referral dashboard for available balance

2. Ensure you have minimum $10 balance

3. Click withdraw to transfer USDC to your wallet

4. Use bridge to move funds to other chains if needed

Tips to Grow Your Referral Tree

Content Strategy

• Educational content: Create tutorials and guides

• Success stories: Share your trading success

• Platform updates: Keep community informed

• Community engagement: Be active in discussions

Network Building

• Quality over quantity: Focus on active traders

• Support network: Help referrals succeed

• Encourage referrals: Motivate your network to refer others

• Community building: Create value for your network

Strategic Sharing

• Right communities: Share in relevant trading communities

• Timing: Share during high-activity periods

• Personal touch: Personalize your approach

• Value first: Provide value before asking for referrals

Terms & Conditions

• Referral rewards are based on net trading fees paid

• Payouts are made in USDC

• Polynomial reserves the right to update the program as needed

• All referrals must be new users to the platform

• Rewards are subject to platform terms and conditions

Best Practices

Before Opening Positions

• Research: Understand the market you're trading

• Plan: Have entry, exit, and risk management plan

• Size: Start with small position sizes

• Leverage: Use appropriate leverage for your experience

While Managing Positions

• Monitor: Regularly check your positions

• Adjust: Modify stops and targets as needed

• Emotions: Don't let emotions drive decisions

• Journal: Keep track of your trades

When Closing Positions

• Stick to Plan: Follow your original plan

• Take Profits: Don't be greedy

• Cut Losses: Don't let losses run

• Learn: Analyze your trades for improvement

Common Mistakes to Avoid

1. Over-leveraging: Using too much leverage too soon

2. No Stop-Loss: Not setting risk management orders

3. Emotional Trading: Making decisions based on fear or greed

4. Revenge Trading: Trying to recover losses immediately

5. Ignoring Fees: Not accounting for trading and funding costs

Troubleshooting

Common Issues

Position Not Opening

• Check if you have sufficient margin

• Verify you're on the correct network

• Ensure you have enough gas for transactions

• Try again during lower traffic periods

Position Not Closing

• Check if you have sufficient balance for fees

• Verify the position is still open

• Ensure you're using the correct closing method

• Contact support if persistent issues

Unexpected Liquidation

• Review your liquidation price

• Check if you had sufficient margin

• Understand the liquidation process

• Learn from the experience

Getting Help

• FAQ: Check common questions

• Community: Join Discord for peer support

• Support: Contact us for direct assistance

Next Steps

After learning to trade:

1. Understanding Cross-Margin - Learn margin management

2. Debt Mechanism - Understand risk management

3. Advanced Trading Strategies - Explore advanced techniques

4. API Documentation - Access trading APIs

Important Reminders

• Start Small: Begin with small position sizes

• Use Stop-Losses: Always set risk management orders

• Monitor Positions: Regularly check your open positions

• Learn Continuously: Improve your trading skills over time

This comprehensive trading guide covers all essential aspects of trading on Polynomial. Master these fundamentals before moving on to advanced strategies and risk management techniques.