> For the complete documentation index, see [llms.txt](https://xybit.gitbook.io/xybit-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://xybit.gitbook.io/xybit-docs/how-to-use-xybit/how-to-trade-on-xybit.md).
# How to trade on Xybit
Setting Leverage and Margin Mode on Xybit
On the top part of the Xybit Trade Panel, you can find buttons to adjust leverage and margin mode
Xybit has two different margin modes: "*Isolated*" and "*Cross*" margin modes. Users are free to use either margin mode. The margin types are explained below.
**Isolated Margin**
Each position has its own independent margin. This isolates the risk of each trade, limiting potential losses to the margin allocated to that specific position.
**Cross Margin**
The margin is shared across all open positions in your account. This can help avoid liquidation if one position incurs losses, but it also means that all positions are at risk if the overall margin level falls below the maintenance margin requirement.
**Adjust Your Margin Mode**
Navigate to the "Trade" screen. On the right-hand side, locate the dropdown button labeled "Isolated," which indicates your current margin mode. To modify your margin mode, click this button.
*Leverage* is a tool in trading that allows you to control a larger position with a smaller amount of capital, amplifying potential profits (or losses) from market movements. It involves borrowing funds from the trading platform, with your initial capital serving as collateral.
Xybit offers users flexibility in adjusting leverage. In Xybit, it is possible to use leverage ranging from 1 to 5 times across all listed trading pairs. Using leverage, you can multiply your margin to increase your total order amount.
`Calculated as,`` `*`Total Position Size = Margin x Leverage`*
**Adjust Your Leverage**
To adjust your leverage size, please proceed to the "*Trade*" screen. On the right side of the screen, you will see a button labeled "1*X*" This button represents your current leverage size. To change your leverage size, please click on the corresponding button.
After clicking the relevant button, the leverage size selection screen will open. On this screen, you can see leverage sizes from **1x to 5x**. Select the leverage size you want to use and confirm the changes by clicking the "*Confirm*" button.
## Xybit Order Types
#### Order Type
Xybit supports two types of order: "*Limit*" and "*Market*" orders and choose to go LONG(BUY) or SHORT(SELL). Users must choose an order type for the position they want to open. These order types are explained below.
**Market Order**
A market order is an instruction to buy or sell a financial instrument immediately at the best available current market price. It prioritizes speed of execution over price, ensuring that the trade is filled quickly, but the actual price at which the trade is executed may vary slightly from the price you initially see.
**Limit Order**
A limit order is an instruction to buy or sell a financial instrument at a specific price you set or better. This gives you more control over the price at which your trade is executed. However, there's no guarantee that your order will be filled, especially if the market price doesn't reach your specified limit.
**Advanced Orders**
**You can place Take Profit and Stop Loss Order from the advanced order mode or by triggering the TP/SL checkbox**
***Take Profit (TP)***: This feature allows you to set a target price at which your position will automatically close, securing your profits. Once the market price reaches this target, the trade is closed, and the profits are realized. This is particularly useful for locking in profits without having to monitor the market constantly.
***Stop Loss (SL)***: This feature helps you limit your potential losses by setting a price at which your position will automatically close. If the market moves against your position and reaches the stop loss price, the trade will close, minimizing your losses. This is crucial for managing risk and protecting your capital.
**Adjusting Stop Loss & Take Profit**
To set these mechanisms, navigate to the "Trade" screen when you open a position. Activate the TP/SL button. You will typically find options to enter prices for both "*Take Profit*" and "*Stop loss*" either during the initial setup of the trade or as modifications to an existing position. These settings are crucial for effective risk management in trading strategies.
**Monitoring and Closing your Trades**
**To Monitor and Close your trades scroll down to your portfolio and look at your active positions, in the actions tab you will find a close button to close your position**
**To cancel a limit order, go to orders tab and open orders tab inside it, where you can cancel an open order**
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