> ## Documentation Index
> Fetch the complete documentation index at: https://docs.ultramarkets.xyz/llms.txt
> Use this file to discover all available pages before exploring further.

# How Leveraged Trading Works

> Learn how to open positions, understand the position lifecycle, and navigate market close dates.

Ultramarkets lets you trade prediction market movements with up to 10x leverage. You deposit margin, we lend you buying power from the vault, and execute your position directly on Polymarket.

## Opening a Position

<Steps>
  <Step title="Choose a Market">
    Pick your direction (Long or Short)
  </Step>

  <Step title="Set Your Margin">
    Minimum \$10 USDC
  </Step>

  <Step title="Select Leverage">
    Up to 10x, varies by market
  </Step>

  <Step title="Choose Order Type">
    Market order (immediate execution) or limit order (set a target price)
  </Step>

  <Step title="Review and Confirm">
    We execute the trade on Polymarket
  </Step>
</Steps>

## Market Orders vs Limit Orders

Ultramarkets supports two order types for opening leveraged positions:

* **Market orders** execute immediately at the current market price. Open fee is 0.5% of margin. Single fill: your position opens in one transaction.
* **Limit orders** let you set a target price. Your order rests on the Polymarket CLOB until the price is hit. Open fee is 1.5% of margin. Partial fills are supported, and your position builds up incrementally as fills arrive. Unfilled capital is refunded on cancellation or expiry.

|                  | Market Order                | Limit Order                                   |
| :--------------- | :-------------------------- | :-------------------------------------------- |
| **Execution**    | Immediate at current price  | Rests on CLOB until target price is hit       |
| **Open fee**     | 0.5% of margin              | 1.5% of margin                                |
| **Fills**        | Single fill                 | Partial fills supported                       |
| **Cancellation** | Can cancel before execution | Can cancel anytime; unfilled portion refunded |
| **Entry price**  | Single fill price           | Weighted average across fills                 |

<Info>
  Limit orders lock your capital (margin + vault loan + fee) upfront. If the order is partially filled and then cancelled, unfilled capital is refunded proportionally. See [Limit Orders](/for-traders/limit-orders) for full details.
</Info>

**Example (market order):** You deposit \$1,000 margin with 10x leverage.

| Component           | Amount               |
| :------------------ | :------------------- |
| Borrowed from vault | \$9,000              |
| Total position size | \$10,000             |
| Opening fee         | \$5 (0.5% of margin) |
| Total cost          | \$1,010              |

## Position Lifecycle

Once open, your position has three possible endings:

<CardGroup cols={3}>
  <Card title="Manual Close" icon="hand">
    You close it manually. Take profits or cut losses whenever you want.
  </Card>

  <Card title="Liquidation" icon="triangle-exclamation">
    If the market moves against you and your health drops to 45%, we close your position to protect the vault.
  </Card>

  <Card title="Auto-Close" icon="clock">
    Every market has a close date. All positions close automatically at this time.
  </Card>
</CardGroup>

## Market Close Dates

Every market on Ultramarkets has a predetermined close date, set when the market is listed. This is not a fixed rule like "72 hours before resolution." Close dates vary by market type:

| Event Type        | Typical Close Window                        |
| :---------------- | :------------------------------------------ |
| **Elections**     | May close days before results are certified |
| **Sports**        | May close at game start                     |
| **Economic data** | May close before the release                |

<Info>
  The close date is always visible in the market details and when previewing a position. Plan accordingly.
</Info>

## Trading Probability, Not Outcomes

This is the mental shift that matters: **you're trading probability movements, not betting on outcomes.**

You don't need Trump to win to profit from a Trump YES position. You just need the probability to rise before the market closes. If you enter at 40% and exit at 50%, you profit. Whether Trump actually wins is irrelevant to your trade.

<Note>
  This is what makes leveraged prediction markets work. You capture volatility during the trading window, then exit before resolution.
</Note>