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Managing Positions

This guide covers how to monitor, adjust, and manage your trading positions.

Position Overview

Your position in a market tracks:

FieldDescription
yes_sharesYES shares you own (unlocked)
no_sharesNO shares you own (unlocked)
locked_yes_sharesYES shares locked in sell orders
locked_no_sharesNO shares locked in sell orders
collateral_lockedUSDC locked in buy orders

Viewing Your Position

Available Shares

Shares available for trading:

Available YES = yes_shares - locked_yes_shares
Available NO = no_shares - locked_no_shares

Position Value

Estimate your position value using current market prices:

YES Value = yes_shares × current_yes_price / 10000
NO Value = no_shares × (10000 - current_yes_price) / 10000
Total = YES Value + NO Value

Adjusting Positions

Adding to a Position

To increase your exposure:

Reducing a Position

To decrease your exposure:

Hedging

Hold both YES and NO shares to reduce risk:

Open Orders

Viewing Open Orders

Each order on the book includes:

FieldDescription
order_idUnique identifier
price_bpsLimit price
quantityRemaining shares
original_quantityOriginal order size
timestampWhen placed

Cancelling Orders

You can cancel any open order you own:

What happens on cancel:

  • Buy orders: USDC collateral returned to available balance
  • Sell orders: Shares unlocked for trading or settlement

Position Lifecycle

End of Trading

When trading ends (at t_end):

  1. All open orders are cancelled

    • Buy orders: Collateral returned
    • Sell orders: Shares unlocked
  2. Shares are frozen

    • No more trading allowed
    • Wait for resolution
  3. Settlement becomes available

    • After market resolves
    • Claim your winnings

Position Statistics

Your position tracks lifetime statistics:

StatisticDescription
total_boughtTotal shares purchased
total_soldTotal shares sold
total_fees_paidTaker fees paid
total_rebates_earnedMaker rebates received
first_trade_atTimestamp of first trade
last_trade_atTimestamp of last trade

Risk Management

Position Sizing

Consider maximum loss when sizing positions:

PositionMax Loss
100 YES @ 6000 bps60 USDC (if DOWN)
100 NO @ 4000 bps40 USDC (if UP)

Diversification

Spread risk across:

  • Multiple markets (different epochs)
  • Different assets (BTC, ETH, etc.)
  • Both YES and NO positions

Stop-Loss Strategy

No automatic stop-loss, but you can manually:

  1. Monitor price movements
  2. Place sell orders at your stop level
  3. Accept the loss if price moves against you

Monitoring Tools

Key Metrics to Watch

MetricDescription
Current PriceWhere shares are trading
Your Entry PriceWhat you paid
Time RemainingUntil market ends
Oracle PriceCurrent Pyth price

Position P&L

Calculate unrealized P&L:

Unrealized P&L = (current_price - entry_price) × quantity / 10000

Example: Bought 100 YES @ 5500, now trading @ 6500

P&L = (6500 - 5500) × 100 / 10000 = 10 USDC profit

Common Scenarios

Taking Profit

Price moved in your favor? Lock in gains:

Cutting Losses

Price moved against you? Limit damage:

Hold to Settlement

Confident in your prediction? Wait for resolution:

Best Practices

  1. Track Entry Prices: Know your breakeven
  2. Monitor Time: Market ends automatically
  3. Cancel Unused Orders: Free up capital
  4. Review Statistics: Learn from your trades
  5. Plan Exit Before Entry: Know when to close

Next Steps