> ## Documentation Index
> Fetch the complete documentation index at: https://docs.vanna.finance/llms.txt
> Use this file to discover all available pages before exploring further.

# Open a Short

> Bet on a price going down with a Phoenix perp from your margin account.

A **short** profits when the price falls and loses when it rises. Losses on a short have no fixed ceiling, because a price can keep rising: watch your health factor.

**1. Pick the market**

On **Trade → Perps**, choose SOL, ETH, BTC, TSLA or META and check the market is Open.

**2. Select Short**

In the order panel click **Short**, with **Market** selected.

**3. Set collateral and leverage**

Enter the USDC **Collateral** (or use MAX / the slider) and choose **Order leverage**. **Position size** updates.

**4. Check the order**

**Order on Phoenix** shows the estimated entry price and the **min entry price** your slippage allows, plus the account's health factor after the order.

**5. Place it**

Click **Short** and approve. Collateral moves to Phoenix and the order fills in the same transaction.

## Funding on shorts

When funding is **positive** (most of the time in a rising market) shorts are paid every hour. When it turns **negative**, shorts pay. This is the same funding Vanna's [delta-neutral vaults](https://docs.vanna.finance/solana/guides/farm/delta-neutral.md) earn by holding spot and an equal short.

## Closing

Click **Close** on the position (all or a percentage, as a reduce-only market order) or **Close All**. When nothing is left open, the USDC goes back to your margin account. [Flash repay](https://docs.vanna.finance/solana/guides/margin/repay.md#flash-repay) also closes every perp position as its first step.

## Next steps

> **[Open a long](https://docs.vanna.finance/solana/guides/perps/long.md)**
>
> The other side of the trade.

> **[Liquidation](https://docs.vanna.finance/solana/guides/margin/liquidation.md)**
>
> What happens if your health factor hits 1.10.


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