How to close positions in LBank leverage trading

Closing a leverage position on LBank involves navigating to the "Positions" section, selecting the position, determining an exit strategy and order type, entering closing parameters, and monitoring the order status for execution.

Nov 27, 2024 at 01:42 am

How to Close Positions in LBank Leverage Trading

Step 1: Understand the Concept of Position Closing

In leverage trading, closing a position refers to the process of exiting a trade by selling or buying the underlying asset at the current market price to offset the existing position. This action implies that you are no longer holding the position and forfeiting any potential gains or losses beyond the current market value.

Step 2: Locate the "Positions" Section

To initiate the position closing process, navigate to the LBank website or mobile app. Log in to your account and click on the "Positions" tab. Here, you will find a list of all your open positions, including leverage trades.

Step 3: Select the Position to Close

From the list of positions, identify the leverage trade you wish to close. Click on the "Close" button corresponding to the specific position. You will be presented with an order form to execute the trade.

Step 4: Determine the Exit Strategy and Order Type

Based on your trading strategy, select the appropriate order type to close the position. The most common options are:

• Market Order: Executes the position closing at the best available market price, providing instant execution but potential for price slippage.
• Limit Order: Specifies a specific price at which the position should be closed, ensuring the desired execution price but with a potential delay in order fulfillment.
• Stop Market Order: Triggers a market order when the market price reaches a specified trigger level, offering protection against adverse price movements.

Step 5: Enter the Closing Parameters

Enter the appropriate values into the order form, including the quantity or amount of the underlying asset you want to close. Review the order details carefully, ensuring the accuracy of the parameters.

Step 6: Preview and Place the Order

Click on the "Preview" button to check the estimated fees and the impact on your account balance. Once satisfied with the order details, click on the "Place Order" button to send the closing order to the exchange.

Step 7: Monitor the Order Status

Your order will now be placed on the order book and will be filled when the specified conditions are met. You can track the status of the order from the "Orders" tab in your LBank account.

Step 8: Close the Position and Realize Gains/Losses

Once your order is filled, the position will be closed, and the associated gains or losses will be realized and reflected in your account balance. The proceeds can be withdrawn or used for subsequent trades.