Overview
dYdX is a platform focused on derivatives trading — primarily perpetual contracts that let traders take leveraged long or short positions on crypto assets. It emphasizes non-custodial access, an order-book trading model, and tools designed for active traders: advanced order types, margin and leverage, and real-time market data.
How Trading Works
At a high level, trading on dYdX involves:
- Connecting a wallet: You sign in with a compatible Web3 wallet to interact non-custodially.
- Funding margin: Deposit collateral (typically stablecoins) to open and maintain positions.
- Opening positions: Choose market size, side (long/short), and leverage; orders can be market or limit.
- Maintenance: Monitor margin ratio and liquidation threshold to avoid forced liquidations.
- Closing positions: Close manually or use stop/limit instructions to exit.
Common Order Types
- Market order: Immediate execution at the best available price.
- Limit order: Execute only at a specified price or better.
- Stop loss / stop limit: Automated exit to limit downside risk.
- Post-only / reduce-only: Execution flags to control maker/taker behaviour.
Fees & Funding
Trading fees typically depend on whether you add liquidity (maker) or take it (taker). Perpetual markets also include periodic funding payments between long and short sides that align contract price with spot. Fee schedules and funding cadence vary — review the platform’s current fee table before trading.
Security & Non-custodial Benefits
dYdX’s non-custodial design means you keep custody of your assets in your wallet; the protocol only requires you to sign transactions and post collateral. Best security practices include using hardware wallets for significant funds, enabling wallet locks/approvals, and verifying URLs and smart contract interactions before signing.
Risk Management Tips
- Use appropriate position sizing and low leverage until comfortable.
- Set stop-loss orders and monitor margin ratios regularly.
- Diversify exposure and avoid leaving large open positions during high volatility.
- Test with small trades on a testnet (if available) or use minimal capital first.
Practical Checklist Before You Trade
- Confirm wallet compatibility and network settings.
- Understand margin, leverage limits, and liquidation mechanics.
- Check fee schedule and funding rates for the selected market.
- Keep recovery phrases and private keys secure and offline.
Note: This page is a general, educational guide. Protocol features and fee schedules change — always consult the platform’s official documentation or dashboard for the most current details before trading.
Open dYdX Trade Dashboard