Meta title: dYdX Exchange — Decentralized Derivatives & Margin Trading

What is dYdX?

dYdX is a decentralized trading platform focused on derivatives, margin trading, and perpetual contracts. Built on blockchain infrastructure, it aims to combine institutional-grade matching and risk systems with non-custodial wallets so users retain control of funds. dYdX provides high-performance order books, adjustable leverage, and spot-to-derivatives bridges for liquidity.

Key features

  • Perpetual contracts: Trade perpetual futures with variable leverage and competitive funding rates.
  • Non-custodial access: Connect with a Web3 wallet (e.g., MetaMask, Ledger) so you keep custody of your assets.
  • Order types: Market, limit, stop-loss, and advanced conditional orders for precise execution.
  • Liquidity & market depth: Order-book model optimized for professional traders and market makers.
  • High-performance matching: Low-latency engine designed to support active trading strategies.

Fees & funding

dYdX typically charges trading fees based on maker/taker tiers, with incentives for liquidity providers. Perpetual positions also incur funding payments that balance long and short demand — these are calculated periodically and can change with market conditions. Always check the platform’s fee schedule before trading.

Security & custody

Security on dYdX emphasizes non-custodial interactions and smart-contract audits. While users control private keys via wallets, the platform still depends on smart contract integrity and off-chain components for matching. dYdX publishes audits and maintains bug-bounty programs — prudent traders should enable hardware wallets and practice good key management.

How trading works (step-by-step)

  1. Create or open a Web3 wallet (MetaMask, Ledger, WalletConnect-compatible wallet).
  2. Fund the wallet with supported collateral (usually ETH or stablecoins as specified).
  3. Connect your wallet to dYdX and approve necessary transactions.
  4. Select market (perpetual, margin) and set leverage, size, and order type.
  5. Monitor positions, set stop-loss/take-profit, and manage margin to avoid liquidation.

Best practices & tips

Start small and test with low leverage. Use hardware wallets for larger balances, keep private keys offline, and consider using limit orders to control slippage. Monitor funding rates for perpetuals — they influence carrying costs for positions overnight.

Troubleshooting & support

If you encounter connection issues, check wallet permissions, network settings (correct Ethereum or Layer-2 network), and transaction gas limits. For transaction failures, inspect error messages in your wallet and consult dYdX support channels for platform-specific problems.

Further reading & official resources

For official documentation, fee schedules, and announcements visit the dYdX website and docs. Always review terms of service and the most recent platform updates before trading.