In the TRADE section, traders can convert the stablecoin stored in their wallets into position tokens for hedging or speculating purposes. This operation is performed thanks to the “Trade” functionality which allows users buy either Long or Short Position Tokens. If you believe that the price of a specific asset will increase in the near future, you will be willing to swap your stablecoin with long position tokens representing that asset and thus gain long exposure to that underlying asset. Conversely if you believe a drop in the price is more likely, you will be willing to buy a short Position Token on that asset. This operation happens thanks to the presence of the AMM. In fact traders do not need to interact with other participants on the market as the AMM acts as a counter party in this operation. When trading, traders will have to pay a fee to liquidity providers in order to remunerate them for taking on timing risk from the AMM. These tokens can be used inside or outside the DEX itself. Traders can use the position token either to take a position on the market or use them in operations outside it. On Mettalex DEX, these positions can be kept in an open status as long as the user wants to. This freedom is guaranteed by the fact that traders are allowed to close a position whenever they desire just by interacting directly with the AMM, by converting the position token into stable coin (e.g. USDT) which will be deposited back into the user’s wallet.