> For the complete documentation index, see [llms.txt](https://elysia.gitbook.io/elysia-perps/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://elysia.gitbook.io/elysia-perps/trading/positions.md).

# Positions

A **position** is your open exposure in a market: **long** (you profit when the price rises) or **short** (you profit when it falls). As your orders fill, the position moves through a simple lifecycle.

## The position lifecycle

| Action       | When it happens                            | Effect                              |
| ------------ | ------------------------------------------ | ----------------------------------- |
| **Open**     | A fill with no existing position           | Creates a new position              |
| **Increase** | A fill on the **same** side                | Size grows; entry price re-averaged |
| **Decrease** | A smaller fill on the **opposite** side    | Size shrinks; part of PnL realized  |
| **Close**    | An opposite fill equal to your size        | Position ends; PnL realized         |
| **Flip**     | An opposite fill **larger** than your size | Closes, then opens the other way    |

Increase and Decrease only change the size. The position stays open. Close ends it; Flip closes it and opens a new position on the opposite side in the same fill.

## Entry price

Your **entry price** is the size-weighted average of your fills.

* **Increasing** at a different price re-averages it.
* **Decreasing** or partially closing does **not** change it. Only the size drops.

## Profit and loss

* **Unrealized PnL** moves with the market's mark price while the position is open.
* **Realized PnL** is locked in when you decrease or close, and settles to your available balance.

```
Long PnL  = (exit price − entry price) × size
Short PnL = (entry price − exit price) × size
```

PnL is the price difference only; fees are charged separately (see **Mechanics → Fees**).

## Closing a position

* **Close one position** by submitting a reduce-only order on the opposite side for the full size (see [Order Types](/elysia-perps/trading/order-types.md)).
* **Close All** closes each of your positions in turn. Each market settles **on its own**: a gain in one market is not netted against a loss in another; each is realized independently.

## Margin and funding

Each open position carries its own **position margin**. While the position is open, **funding** accrues to it over time as *unrealized funding* (part of your equity) and is banked into the margin only when you next change the position's size, so a position held for a long while can settle out with more or less margin than it started with. Funding is covered in **Mechanics → Funding**.

## Where to go next

* Fees and funding in detail: **Mechanics → Fees** and **Funding**.
* The liquidation threshold: **Risk & Security → Liquidation Risk**.