# Trading on GSOL

## Trading overview

GSOL is a decentralized exchange on Solana blockchain that lets you trade without a username or password. The platform uses oracle-based pricing sourced from [Pyth](https://www.pyth.network/) and use [Chainlink](https://chain.link/) as fallback , which reduces the risk of liquidations from temporary wicks.

## Positions and Orders

GSOL perpetual markets operate using a vault-based model, where traders open positions against a shared liquidity pool instead of matching directly with other traders.

Each position is defined by:

* **Collateral (Margin):** The capital deposited by the trader
* **Position Size:** The total exposure derived from collateral and leverage
* **Leverage:** Multiplier applied to collateral to increase exposure
* **Direction:**
  * **Long** — profit from price increase
  * **Short** — profit from price decrease

Profit and loss (PnL) is calculated using a linear model, meaning it is proportional to the position size and price movement.

### Pricing Model

GSOL uses an oracle-based pricing mechanism instead of an orderbook.

* Prices are derived from external oracle feeds
* A price range is used to ensure fair execution and reduce manipulation
* A mark price (average) is used for display and internal calculations

Execution prices depend on position direction to maintain fairness and system integrity

### Order Types

GSOL supports multiple order types to provide flexible trading strategies:

* **Market Order**\
  Executes immediately at the current oracle price
* **Limit Order**\
  Executes when the oracle price reaches a specified level
* **Stop Market Order**\
  Triggers a position when a defined price threshold is reached
* **Take-Profit / Stop-Loss (TP/SL)**\
  Automatically closes positions to lock in profit or limit losses
* **TWAP (Time-Weighted Average Price)**\
  Splits large orders into smaller parts executed over time to reduce price impact

### Execution Model

GSOL does not rely on a traditional orderbook.

* Orders are triggered by oracle price conditions
* Execution is performed by keepers (off-chain executors)
* There is no queue priority or passive matching system

This ensures consistent execution even in low-liquidity conditions.

### Position Management

Traders can:

* Increase or decrease position size
* Add or remove collateral
* Set multiple TP/SL conditions
* Partially or fully close positions

PnL is realized upon closing a position and includes all applicable fees and price impact.

### Risk Considerations

* Execution is not guaranteed for trigger-based orders during extreme volatility
* Price movements may skip trigger levels due to oracle updates
* Leverage and collateral directly affect liquidation risk