Go long BTC - with Amplify
In this page, you'll learn how to:
Specify an Amplify leveraged trading postion
Open an Amplify leveraged trading position
Monitor, maintain and close an Amplify leveraged trading position
Dive into the world of Bitcoin trading with an edge through Fringe V2 Amplify, a platform that redefines your trading experience. Unlike traditional platforms, Fringe offers an intuitive user interface designed for both newcomers and seasoned traders, providing a seamless journey from decision-making to execution. With an expansive selection of asset pairs at your fingertips, you're equipped to make moves that align closely with your investment strategy, all within the innovative ecosystem of Fringe V2's lending and margin trading platform.
What sets Fringe apart is not just its user-friendly design or the variety of trading pairs available; it's also the cost-efficiency and safety net it provides. With cheaper (partial) liquidations, you're in a position to manage risks more effectively, ensuring your trading journey is both profitable and secure. Embrace the future of trading with Fringe V2 Amplify, where technology meets opportunity, giving you the tools to go long on BTC with confidence and precision.
Expecting BTC price to rise and want to profit from this? Go long BTC using Fringe V2 Amplify
There are a few ways to do this using Fringe. The easiest way is to take out an Amplify leveraged trading position using wBTC or tBTC as collateral. wBTC and tBTC are ERC-20 tokens on EVM (Ethereum Virtual Machine) chains that correspond to BTC and by and large track the price of BTC.
Before opening your Amplify position, obtain some wBTC or tBTC as collateral for the chain you wish to operate on. Check the Fringe markets for each chain to find a chain that supports the collateral asset you’re using.
Step 1. Specify the Amplify leverage trading position that you wish to open.
Select wBTC in the asset selector.
Specify the margin amount and the amplification amount.
Margin is the amount of collateral you supply the position. Simply enter a dollar amount or use the up/down arrows to adjust the margin amount.
“Min” refers to the minimum amount of margin you can specify and corresponds to any wBTC collateral you may have already deposited onto Fringe; otherwise, it is zero.
“Max:” refers to the maximum amount of margin you can specify and corresponds to the sum of any wBTC collateral you may have already deposited onto Fringe plus wBTC held in your wallet. i.e. the maximum amount of wBTC you have available as an initial margin.
Amplification is the amount you wish to amplify that margin amount. Use the horizontal slider to specify the amplification.
The maximum amplification amount is dependent on the collateral asset’s LVR (loan-to-value ratio). This may differ for each collateral asset and is a governance parameter within the protocol.
In the example above, we’ve specified a margin deposit of $10 and an amplification of 2x. This means the $10 of wBTC margin will be amplified 2x, and therefore any gains will be two times as compared to if you merely held on to the wBTC without the leveraged Amplify position.
Step 2. Open the Amplify leveraged trading position.
Now, press the Open Position button to open the Amplify position.
If necessary, Fringe will ask you to enable your wallet to spend your assets. This may include wBTC and USDC. Accept any such requests via your wallet.
The short side of an Amplify leveraged trading position is always USDC, and Amplify will trade USDC on your behalf for the extra amplified collateral. Hence the need to enable USDC.
Your wallet will ask you to approve the transaction to open the Amplify position. Once approved, the Amplify position will be opened and will appear in the Open Positions list.
In the background, any margin amount that you specify not already deposited as collateral will be withdrawn from your wallet to your Fringe collateral holding.
Tracking your Amplify position, maintaining it or closing it
You can track the performance of your position right on the Amplify page. Any time the Amplify page is opened or refreshed, the updated position figures will appear in the open position.
You can click on the open position to show the chart to see the price history of the position.
On the open position, there are three buttons that help you maintain your position.
When closing a position, you may choose from the following:
Repay Using Collateral - this is the usual way to close an Amplify position, which will swap some of the extra collateral/margin for the short asset (USDC in the case of Amplify positions) to repay the position. Or,
Repay - which will repay the position using USDC directly from your wallet, if you have funds available in your wallet. You may choose to Repay using USDC when external markets will incur price impact above your personal tolerance.
Things to keep in mind
The Liquidation Price indicates the price of BTC that will render your position eligible for liquidation. Depositing additional margin will lower the liquidation price, thus making the position safer and at less risk of liquidation.
The Safety Buffer indicates the percentage fall in the asset price that will render your position eligible for liquidation. Depositing additional margin will increase the safety buffer, thus making the position safer and at less risk of liquidation.
APY indicates the APY you will pay on the short assets borrowed to open the position (USDC in the case of Amplify positions).
Choose your Amplification wisely. While a higher Amplification can lead to greater profits when the long asset price moves in your direction, this can also lead to greater losses if the long asset price moves against you.
Monitor your positions. Leveraged trading can bring joy when positions move in your favor. Regularly monitor your leveraged trading positions so that you either exit them and take profit when you are winning or adjust them to avoid liquidations.
With this Fringe V2 Amplify guide, you're now equipped with a roadmap to leverage the rising tide of BTC or your other favorite assets. From specifying your trading stance with precision, to the dynamic management of your positions, each step is designed to amplify your trading potential. The guide aims to demystify the process with a blend of simplicity and depth and also empowers you to navigate the opportunities of cryptocurrency trading with confidence. As you embark on this journey, remember that the keys to success lie in wise amplification choices, careful monitoring, and strategic adjustments. Embrace the innovative features and supportive ecosystem Fringe offers to turn market movements into opportunities. Happy trading!
Here is a video to show how to open the above Amplify leveraged trading position.
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