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Margin Trading Long

This tutorial guides you through the process of setting up a margin trade with a long position on the Mars dApp. Engaging in margin trading allows you to leverage your existing assets to potentially maximize profits. Here’s how you can go about it:

Step 1: Navigating to the Trade Page​

To begin, head to the "Trade" page and toggle the "Margin" option on. This action enables the utilization of the total value of your account as collateral, allowing you to leverage additional assets, provided your position maintains a health factor greater than 1.

Step 2: Choosing an Asset to Buy (Long)​

Once set, proceed to select the asset you wish to buy or go long on from the available options.

Step 3: Selecting an Asset to Sell​

Typically, this would be a stablecoin. Engaging in a long trade means borrowing stablecoins to purchase more of the asset you’re bullish on. This strategy increases your exposure to the chosen asset, and should its value rise, you stand to profit when repaying the stablecoin debt.

Step 4: Determining the Trade Amount​

Specify the quantity you intend to trade. Notably, inputting an amount below the margin ticker will initiate a spot trade using the available collateral.

Step 5: Leveraging Your Trade​

By choosing an amount beyond the margin ticker, you activate the leverage option, borrowing stablecoins to increase your exposure to the asset you are longing.

Step 6: Transaction Authorization​

Authorize the trade by signing and confirming the transaction following the on-screen prompts to secure the trade.

Step 7: Inspecting Balances​

Post-transaction, inspect your balances. You will notice a stablecoin debt but increased exposure to the asset you longed. Successfully playing this long position can allow you to repay the debt at a reduced cost, securing a profit.

Step 8: Navigating to the Borrow Tab​

Proceed to the "Borrow" tab to view your current borrowing position with regards to stablecoins.

Step 9: Managing Borrowed Assets​

Within the "Borrow" tab, select the borrowed asset to inspect further. Here you have the option to either borrow more or repay the existing debt. We will delve deeper into managing borrowed assets in upcoming tutorials.