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I am trying to understand shorts in a perpetual futures market. Let's consider a market of ETH/USDC, trading at 1000 USDC. When user A shorts 1 perp (assuming no leverage) they pay 1000 USDC, the price of one contract. Who receives this 1000 USDC? Since user B on the other side of the contract, who is long, has also paid 1000 USDC for their position. If user A places a long position for 0.5 perp, they will receive 500 USDC back, rather than paying another 500 USDC. How is this determined?

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    $\begingroup$ This question is most likely better suited for Quant SE. $\endgroup$
    – Alex
    Aug 5 at 21:00
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    $\begingroup$ This was already posted on Quant SE: cross-posting is generally discouraged. $\endgroup$
    – AKdemy
    Aug 5 at 21:25
  • $\begingroup$ I’m voting to close this question because it was cross-posted to Quantitative Finance. $\endgroup$
    – Giskard
    Aug 6 at 5:14

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