# Trading Basics

Trading on Morpher is an experience like no other. We’ve made trading both simpler, safer, and more accessible, by leveraging the powerful properties of blockchain technology. With that said, trading on Morpher is slightly different to what you may be used to.

Morpher Tokens (MPH) are used to trade markets on Morpher. When you make a trade on Morpher, you interact with a smart contract that stakes your tokens against the price of whatever market you’re choosing to trade. The result: when the price changes, your staked tokens grow or shrink in value proportionally.

By using Morpher you can trade any market, with as little or as much as you want, and at any time.

# Fractional Trading

Morpher makes it easy to trade any market in whatever quantity you want.

Traditionally, to trade an asset you would need to have a cash balance great enough to cover at least one unit of the asset. On Morpher, you can use any amount of tokens to go Long (Buy) or Short (Sell) on any asset.

This allows you to create a diversified portfolio regardless of your account balance.

For example, if you want to add Apple ($AAPL) to your portfolio, which is trading at $320. You can stake any amount of tokens on Apple, and as time passes and Apple’s price changes, your return will be proportional in tokens. If you invested 20 tokens, and the price increased 10%, your return will be 2 tokens, making your position worth 22 tokens.

# Order Types

There are two different types of trades that you can make on Morpher.

Buy Order: When you “go Long” or Buy an asset, you are expecting that the price of the market is going to increase and stand to benefit proportionally.

Sell Order: A Sell order, or “going Short”, is when you stand to benefit from a decrease in the price of a market. A sell order can be placed anytime, without having an existing position. Selling against an open buy position is not the same as closing a position.

Closing an Order

To close a trade, click on the market in your portfolio, and click “Close Order”.

# Understanding Leverage

Leverage is a powerful tool used by traders to increase their exposure to the market beyond the size of their account balance. In a traditional setting, a trader will take out a loan from a bank or their broker, and therefore be able to trade with a larger account size. While leverage can be used to increase your potential gains, it can also result in the loss of capital just as fast.

The way Morpher offers its users leverage is unique. When placing a trade you have the option to choose the amount of leverage you wish to employ on a variable scale from 1 to 10. The scale of the leverage directly translates to the degree to which your trade exposure will be multiplied by.

To understand how leverage affects our trades let’s consider an example.

Imagine you have 100 MPH Tokens to use to go long Gold. Shortly after making the trade, Gold increases in price by 10%.

  • With a leverage of 1 your exposure is 100 – it doesn’t change – and your return is 10.
  • With a leverage of 2 your exposure is 200, it doubles and so does your return; now 20.
  • With a leverage of 5 your initial invested exposure quintuples, and so do your gains returning 50.
  • With a leverage of 10 your exposure becomes 1000, and the result is a return of 100 tokens.

You can clearly see how leveraging your trades can be incredibly rewarding. Unfortunately, your losses can be multiplied in the same way as your gains.

Now, let’s assume that you made that Gold trade, but it didn’t turn out so well. Instead of increasing by 10%, the price of Gold falls by 10%.

  • Without any leverage you stand to lose 10 tokens, equal to 10% of your original investment.
  • With a leverage of 2 you lose twice as much, 20 tokens.
  • With a leverage of 5, you lose half of your investment, 50 tokens.
  • With a leverage of 10 you lose your entire investment of 100 tokens.

# Negative Balance Protection


Morpher makes it impossible for you to lose more than your balance.

If you have a balance of 100 tokens and use it all on a trade with maximum leverage (10), then your position will close automatically in the instance of a 10% loss. This protects you from going in debt, by losing more than the value of your account. Furthermore, any position that decreases 100% will close automatically.

# 24/7 Trading Explained

On Morpher you can trade your favorite markets 24/7, however it’s important to know how trading across different asset classes at different times affects pricing.

With exception to the cryptocurrency market, which trades 24/7, all markets open and close at different times.

Stock markets will normally be split into three periods: the pre-market, intraday, and after-hours sessions. During pre-market and after-hour trading volume subsides, and prices move less frequently. You can trade during this period, but make sure you pay attention to how the spread changes. The stock market is also closed during certain hours of the night, and on weekend, however you can still enter and exit positions freely, even though the price won’t move.

Commodity futures have varying opening times, with some markets starting to trade as early as Sunday night. Regardless of whether the markets are open or closed, you can always trade commodities.

# Spreads

Morpher does not charge any trading fees, however you still have to remain mindful of the spread when you trade. Morpher spreads constantly change depending on the volatility of the underlying asset.

# Your Portfolio

The Portfolio page is where you will find a list of your positions, a chart showcasing your historical performance, and an asset class breakdown of your portfolio holdings.

The chart provides a representation of your token returns over time, and the balance of your portfolio. It changes dynamically to reflect the unrealized returns of your positions. The number above the chart, labeled “All Holdings” shows you the balance of your account, while the adjacent percent shows your return over the last 24 hours.

The table is divided into a number of columns which detail your positions.

Symbol: Each market has its own corresponding symbol, or ticker. The symbol is usually in some ways related to the name of the market and makes looking up news or price movements a lot easier than having to type the full name. You can also use symbols in the search bar.

Name: This column shows the full name of the market that you’re trading.

Direction: Morpher makes it easy to go long or short any asset. This column shows you whether you’re Long the market (“Buy”) or shorting it (“Sell”).

Type: Here you can see what asset class the market is in; stocks, commodities, indices, crypto, etc.

Avg. Entry Price: This is the average price at which you entered the position. Positions within the same market are aggregated together into the same row, and so this column displays the average trade price of all positions that you’ve made in that market.

Leverage: Leverage allows you to increase your trade exposure without increasing your investment amount. While leverage can help you achieve stellar returns, it’s a double-edged sword that also magnifies your potential losses. This column shows you the average leverage of your positions for the market. A leverage of 1 is the same as no leverage.

Total Return: As the market moves the value of your positions changes. This column expresses your unrealized returns in MPH tokens.

% Return: This return column shows you the unrealized percentage gained or lost on your positions.

Value: The value column represents the total value of your position. This figure will reflect the sum of your total return, and the amount that you invested in the position.

Weight: In this column you can see the weight in percent of the position in your portfolio.