> For the complete documentation index, see [llms.txt](https://docs.particle.trade/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.particle.trade/trading/open-positions.md). # Open Positions ## Long / Short with Leverage As long as the liquidity exists for a token pair, a trader can long or short a token using its paired token with leverage. The maximum available leverage is determined by how narrowed range is the available liquidity. To open each leverage position, there are two parts of payment -- collateral and premium. The collateral is the maximum amount that a position can lose, if the price moves to the undesirable direction. The premium is for interest accrual and the leftover portion will be repaid at position closing. ## Fees Each leverage position comes with three fees: open swap fee, open position fee and close swap fee. The swap fee at position opening and closing is paying the LPs from the underlying AMM. The position fee is 0.03% of the leverage position size, which is paid to the LP that lends the liquidity. This fee is deducted from the collateral, and is calculated as part of the PnL. ## Premium The premium is 2% of collateral as an upfront payment. Interest is accrued to the premium at a rate according to the underlying AMM's swapping activities. The frontend surfaces an hourly borrowing rate for this interest accrual. The [liquidation](/trading/liquidation.md) happens when interest accrues over the premium. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.particle.trade/trading/open-positions.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.