# Trade ## Connect Wallet {% hint style="info" %} If you do not have a wallet, you can use Phantom: {% endhint %} Click the `Connect Wallet` button at ![](/files/I0ByjHMPh48P58rpiY9w) ## Get Tokens * **SOL** is the native currency on the Solana blockchain. SOL is used to pay for the compute that the network uses to process your transactions. You need SOL in order to use any applications on Solana such as Parcl. * **USDC** is the token used for trading on the Parcl Protocol. You can buy SOL and USDC in your Phantom wallet using MoonPay or Coinbase Pay. * First, open up your Phantom wallet and click the `Buy` button on your assets tab. * Select `Solana` or `USDC`, then either input a custom amount or choose a quick-buy option. * Lastly, you can then choose the Coinbase Pay or MoonPay option.
## Select Market Parcl offers many US geographic markets like New York City and San Francisco. In the future Parcl will also support international markets. Click `Trade` to open the trading page for that Parcl market.
## Trade Page We selected to open a trading position in [Manhattan, NY](https://en.wikipedia.org/wiki/Manhattan) (New York City). You can see the left side has data about Manhattan. Most important is the price per square foot of residential real estate in Manhattan.
## Open Position Enter the amount of USDC to trade. Select to `Buy` or `Short` the price of real estate in Manhattan. If you `Buy`: * You think the price of Manhattan will increase. * Your position will lose money if the price decreases. If you `Short`: * You think the price of Manhattan will decrease. * Your position will lose money if the price increases. If you are trading in advanced mode, then you select your leverage for this trading position. Leverage options are between 1 and 10, inclusive. Leverage is applied to price movements. ![](/files/xgKtdoCwb5vs3cpIvn9t) ### Submit Trade Click `Submit` button to open the position. Information about the trade is displayed underneath the `Submit` button. After you approve the transaction in the Phantom wallet popup you will see the success screen. `Entry Price` is the price you opened your position at. The `Exchange Rate` is the market's current ratio of deposited USDC to Liquidity Tokens. * The `Exchange Rate` is used by the protocol to determine how many liquidity tokens to mint for your position. $$ Exchange Rate = \frac{Collateral\_{pool}}{Liquidity\_{supply}} $$ `Entry Funding Rate` is market's current funding rate. * If the funding rate is positive, then the pool's long traders are paying the short traders. * If the funding rate is negative, then the pool's short traders are paying the long traders. The `Trading Fee` is the fee charged for every trade. The pool gets 60% and the protocol gets 40% of trading fees. The Pool Impact Fee is the fee charged for your trade making the pool more imbalanced and skewed. Trades that make the pool more balanced pay 0 pool impact fees. ![](/files/2eugYqhHDs2mdhbA1J0r) ## Manage Positions You can manage your Manhattan positions from the Manhattan trade page.

Position Value is .99

Your position's card shows the following information on the left side: * `Entry Price` is the price you opened the position at. * `Trade Direction` is whether the position is long or short. * `Leverage` is the position's price movement multiplier. * The `Date` is the date and time when you opened the positon. Your position's card shows the following information on the left side: * `Position Value` is measured in liquidity tokens and then converted to USDC at the current exchange rate. * Value is show in the image next to the USDC logo. It is $.99. * Value is calculated as the sum of price movement since you opened the position and the accrued funding since you opened the position. * Your `Gain` on the position is shown in green or red color. `Gain` is measured in USDC and also as a percentage. {% hint style="warning" %} **Liquidations** * Positions can be liquidated if their losses are greater than or equal to 75% of the initial USDC from opening the position. * Price movement and funding fees affect liquidation. * If you are liquidated, you will receive any remaining liquidity tokens from your position after the liquidator is paid their bonus and the protocol burns your losses. {% endhint %} ## Close Position Click the `Close` button to input the amount of your position's `Value` you want to receive from your position's current value. ![Close button](/files/W34Yr2dNjO0swSKYjDHJ) The amount of `Value` is used to calculate the percentage of the position to close. ![](/files/LnDuBiyGuLq4BzOWokUf) ### Submit Trade After you submit the close position trade, the success page will show up. ![](/files/YJNuanXPJ9ls8EvEyBBQ) {% hint style="warning" %} **All remove liquidity transactions take 8 hours to settle.** So you will receive your USDC from the remove liquidity transactions after 8 hours has passed. This protects users and the protocol from fast atomic exploits and other issues that take time to solve. Anyone can send transactions to process pending withdrawals but Parcl operates bots to ensure all pending withdrawals are paid out immediately once they have settled after the 8 hour period has ended. {% endhint %} `Price at Close` is the price you received when you closed the position. Your gain from price movement is your price at close minus your entry price multiplied by your leverage multiplier. The Exit Funding Rate is the pool's funding rate at exit. You either pay a `Funding Fee` or earn a Funding Rebate depending on if the pool's open interest moved in your favor during your position's lifetime. Your `Funding Fee/Rebate` is calculated as the pool's `Exit Funding Rate` minus your position's `Entry Funding Rate` multiplied by your position's USDC from open multiplied by the position's leverage multiplier. You pay the `Funding Fee` if funding moves in the same direction as your position's `Trade Direction`. You earn the `Funding Rebate` if funding moves in the opposite direction of your position's `Trade Direction`. This because funding moves with the open interest majority and the open interest majority pays the minority side. You receive liquidity tokens when you close positions. The website uses an auto-withdraw liquidity feature to convert liquidity tokens from closing the position into USDC. In the future, the website will offer the ability to hold onto liquidity tokens instead of auto-withdrawing and receiving USDC. --- # Agent Instructions: 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: ``` GET https://docs.parcl.co/v2-archive/trade.md?ask= ``` The question should be specific, self-contained, and written in natural language. 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.