Dual Positioning for Flexible Profit-Taking

This is a speculative trading method on Kana Perps platform

How to Use Dual Positions

• Traders can open long and short positions at the same price and equal size.

• This allows them to profit from funding rate changes or close the more profitable side.

Example:

• Opening a Long and Short at $7

• Long Position: $250 at $7

• Short Position: $250 at $7

• Total Margin Used: (250 / 20) + (250 / 20) = 25 USDT

How Funding Rate Works

• If the Funding Rate is Positive (+0.02%), the Long pays Short, and the Trader must now wait for a price move to close one position profitably.

• If the Funding Rate Flips Negative (-0.01%), the Short pays Long, resulting in the trader earning passive income. Here, the trader profits without price movement.

Profiting by Closing One Position

Scenario 1: Price Drops from $7 to $6.80

• Long loses $7.14 USDT.

• Short profits $7.14 USDT.

• Trader closes the short, keeping the long open.

Scenario 2: Price Rises from $7 to $7.20

• Short loses $7.14 USDT.

• Long profits $7.14 USDT.

• Trader closes the long, keeping the short open.

Liquidation Risks

• Only at extreme price moves (15-20%+) would one position risk liquidation.

Why This Works for Speculators

• No risk from funding rate shifts (as long cancels short).

• Flexible profit-taking—whichever side gains, the trader closes the winning side.

• Earning passive funding fees when rates flip negative.

Key Takeaway

• Best case: Funding rate flips negative → Long earns passive fees.

• Alternative: Price moves → Close the profitable position.