Trade Perps on GMX
How to trade perpetuals on GMX v2: leverage, funding rates, GLP/GM liquidity, and risk management.
What you'll need (prerequisites)
- Self-custodial wallet (MetaMask, Rabby, etc.)
- ETH or native gas token
- Tokens to open a perp position with
- Familiarity with transaction approvals
Recommended for this tutorial
Tools and accounts referenced in the steps below:
Step-by-step
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Step 1: Connect a self-custodial wallet
Open GMX's official site (verify the URL — phishing fakes are common). Click "Connect Wallet" and choose your wallet (MetaMask, Rabby, WalletConnect, hardware). Approve the signature request — this does not move funds.
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Step 2: Select the correct network
Confirm your wallet is on a network GMX runs on (Arbitrum or Avalanche). Wrong-network connections are the #1 source of UX confusion.
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Step 3: Acquire the input tokens
Most GMX actions require both a token and ETH (or the chain's native token) for gas. Hold a small buffer (~$10-20) for transaction fees.
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Step 4: Approve token spend
For ERC-20 tokens, the first interaction requires an "approve" transaction granting GMX permission to move that token. Approve the exact amount (not unlimited) when possible to limit downside if GMX is ever exploited.
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Step 5: Execute the open a perp position transaction
Enter the amount, review the slippage tolerance (0.1-0.5% for stablecoins, 0.5-1% for blue chips, more for thin-liquidity tokens). Click confirm and approve in your wallet. Wait for on-chain confirmation.
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Step 6: Verify on-chain
Open the transaction on the block explorer for your chain (Arbiscan for Arbitrum, Snowtrace for Avalanche). Confirm the balance change matches expectations. Save the transaction hash for tax records.
Common errors and fixes
- Transaction reverted. Most reverts are slippage exceeded, allowance not set, or insufficient gas. Increase slippage marginally and retry, or check Tenderly for the revert reason.
- Stuck pending transaction. Speed up with a higher gas price (replace-by-fee) or cancel by sending a 0-value tx to yourself with the same nonce and higher gas.
- Approved a malicious contract. Immediately revoke at revoke.cash. Move remaining tokens to a fresh wallet if you suspect ongoing compromise.
- Wrong network. Switch chains in your wallet. If funds were sent cross-chain to a contract that doesn't exist on the destination, contact the bridge support.
- Slippage too high. For thin-liquidity tokens, split the swap into smaller chunks or route via an aggregator (1inch, CoW Swap, Matcha) which finds better paths.
FAQ
Is GMX safe?
GMX is one of the most widely used and audited protocols in DeFi. As with any smart-contract platform, residual risk includes: smart-contract bugs, oracle failure, governance attack, and economic exploits. Diversify across protocols and never deposit more than you can afford to lose.
What are the fees for GMX?
Protocol-level fees vary by action and chain. Network gas adds another $0.50-50 depending on chain congestion (much cheaper on L2s and Solana than Ethereum mainnet). Always preview fees before confirming.
Can I undo the transaction?
On-chain transactions are irreversible. Always test with small amounts first, double-check addresses and amounts, and use simulation tools (Tenderly, Pocket Universe) to preview the outcome.
Does GMX have an audit?
Yes — GMX has been audited by independent security firms, with reports linked from the official docs. Audits reduce but never eliminate risk.
What is impermanent loss / liquidation risk?
For LP positions, impermanent loss is the difference between holding the LP vs holding the underlying tokens — it grows with price divergence. For lending positions, liquidation risk grows as collateral price falls; maintain a health factor well above 1.