Trading Guidance

Opening a Leverage Position

To open a leverage position, go to the Trade page and choose either "Long" or "Short," depending on your strategy.

• Long Position:

  • You profit if the token’s price increases.

  • You incur a loss if the token’s price decreases.

• Short Position:

  • You profit if the token’s price decreases.

  • You incur a loss if the token’s price increases.

After choosing your position, enter the amount you wish to invest and the leverage you want to apply.

Below the swap box, you'll see the "Exit Price," which indicates the price at which your profits would be calculated if you opened and immediately closed the position. This exit price will fluctuate with the token's market price.

Setting Up Limit/Stop Limit Orders

To place a limit order, choose the "Limit" option after deciding whether you want to go long or short.

After placing your limit order, it will be listed in the "Orders" tab. From there, you can modify the order, including adjusting the trigger price if needed.

Keep in mind that limit orders may not always execute. This can happen for several reasons, such as:

• Not enough Liquidity.

• Slippage Settings too low (especially during volatile market conditions).

The same mechanism applies for stop limit orders. Once the trigger price is met, the orders would be put into queue, waiting to be executed at users’ desired limit price.

Choosing a Market

You can switch between markets by selecting the token you want to Long or Short.

Leverage Adjustment Based on Pool Open Interest

As the total open interest of a pool increases, the maximum allowed leverage will decrease. This mechanism is designed to protect the pool from potential exploitation through high leverage positions. While this primarily impacts markets with lower liquidity, it can also affect high liquidity markets if the open interest becomes substantial. The interface will alert you if your desired leverage exceeds the maximum allowed.

It's important to note that this limitation only applies when opening or increasing positions. Existing positions are not affected by these changes. When closing or reducing a position, even if the maximum allowed leverage would be exceeded, the order can still be executed. However, the collateral within the position will not be reduced.

Closing a position

To close a position, either partially or fully, click the "Close Position" button in the position row. In an emergency, the user can instantly close the position using the "Instantly Close" function. This action will realize any pending profits or losses based on the proportion of the position that you close.

For both long and short positions, any profits will be paid out in the same stablecoin you used to open the position, such as USDC.

The profit or loss on a position, excluding any changes in the value of your collateral, is directly proportional to the size of your position. For instance, if you open a long ETH position with a size of $100,000 and the price of ETH increases by 5%, you would gain $5,000. Conversely, if the price decreases by 5%, you would lose $5,000.

If you had opened a short position instead, a 5% decrease in ETH's price would yield a $5,000 profit, while a 10% increase would result in a $5,000 loss.

Leverage for a position is typically displayed as:

position size / position collateral

In addition, users can increase/decrease leverage through the formula

position size + PnL / position collateral

Price Impact

Trades on flaex are subject to price impact and Slippage as in Uniswap. A larger trade might move the prices significantly instead of smaller ones. However, with Uniswap V3’s concentrated liquidity model, it is unlikely that price impact will affect users trading experience, especially for “blue-chips” such as ETH, BTC…

During volatile market conditions, slippage might become a problem as your limit order with your slippage settings might not be quick enough to catch up with the large price movement.

If you encounter a “Price Impact” or “Slippage” Errors, try to configure your settings for a better trading experience. Please keep in mind that flaex will try its best to execute your trades at the best possible prices even though your slippage settings might be high.

Price impact fair for all

Flaex leverages liquidity directly from Uniswap V3, ensuring that the trading environment reflects true market conditions. As a result, price impact—whether negative or positive—is inherently driven by the principles of supply and demand. This approach ensures that liquidity is not only accessible but also distributed in a manner that maintains fairness and transparency across all trades. By sourcing liquidity from a decentralized and widely adopted platform like Uniswap V3, Flaex creates an equitable trading environment where price movements are naturally determined by market forces, benefiting all participants equally.