Trading Mechanics
How trading works on MegaTAO.
Core Concepts
Leverage System - Leverage from 1x to 3x (currently) and risks
Position Types & Management - Long/short positions and sizing
Order Types & Specifications - Market, limit, and automated orders
⚠️ Current Limits
Maximum Leverage: 3x (will increase later)
Collateral Deposit Cap: Currently limited (will be removed later)
Market Mechanisms
Funding Rate System - Periodic payments for price alignment
Liquidation Mechanics - Liquidation triggers and prevention
Liquidation Protection
Understanding liquidation mechanics helps you avoid the costly consequences of forced position closures. Learn about margin requirements, early warning systems, and prevention strategies.
Prerequisites
Before diving into Trading Mechanics, ensure you have completed:
Getting Started - Basic platform understanding and setup
Next Steps
After mastering the Trading Mechanics, continue to:
Risk Management - Essential capital protection strategies
Costs & Fees - Understanding trading costs and optimization
Trading Strategies - Applying mechanics to real trading strategies
Master the mechanics, then master the markets.
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