How to open and close a trade
Last updated
Last updated
In order to open a position, head to the Order Placement Module on the ‘Trade’ page of the platform.
From here, choose the direction of your trade, either ‘Long’ or ‘Short’ and an order type, either ‘Market’, ‘Limit’ or ‘Trigger’:
Long positions are used when a trader wants to profit on the assets increase in market price. Thus, when the asset is increasing in price, a Long position is profiting and vice versa, when the price decreases, a long position is losing.
In order to open a long position on the market, choose the ‘Long’ option in the order placement module and fill in the following order parameters:
Amount of personal funds that will be deducted from the Wallet in order to open a position
Size of the position
Leverage amount
Funding rate
After all the parameters have been set, click on the ‘Create’ button:
By tapping on the 'Create' button, you approve the transaction execution on the blockchain.
If the approvement is successful and all criteria are met, a second window will pop-up:
By clicking on the 'Proceed' button you'll submit your order to the DEX.
Short positions are used when a trader wants to profit on the assets' decrease in market price. Same as for long positions, when the asset is decreasing in market price, a short position is profiting, and when the price of the asset is rising the position is losing.
In order to open a short position on the market, choose the ‘Short’ option in the order placement module and fill in the following order parameters:
Amount of personal funds that will be deducted from the Wallet in order to open a position
Size of the position
Leverage amount
Funding rate
Collateral currency
One important difference to note between opening a long and a short position is, when opening a short position one must also consider choosing between several currencies which he would use in order to open a position. Basically, the token used in the 'Collateral In' field would define the market price in relation to the asset a trader is shorting. As in the example on the screenshot, it would be WBTC/USDC as we’re shorting the WBTC currency and chose the USDC as a 'Collateral In'.
It is recommended by FlashFlow to always pick a stablecoin as a collateral currency, as it would provide less fluctuations in the price movement and make your position more resistant to the market fluctuations as opposed to altcoins and other currencies.
After all the parameters have been set, click on the ‘Create’ button:
By tapping on the 'Create' button, you approve the transaction execution on the blockchain.
If the approvement is successful and all criteria are met, a second window will pop-up:
By clicking on the 'Proceed' button you'll submit your order to the DEX.'
When shorting any currency using FlashFlow, profits would be transferred to the trader's Wallet in the currency as selected in the 'Short' field, when initially managing order parameters in the 'Order Placement Module'.
In order to close a position on the market proceed to the ‘Open Positions’ tab on the ‘Trade’ page of the FlashFlow platform.
Here, you will see a list of all your positions currently opened on the market.
In order to close a position simply click on the ‘Close’ button opposite to a position you wish to lock in your profits for or prevent further losses:
Similar to position opening process, an additional confirmation window will pop-up allowing you to evaluate the current state of your position and confirm your intention to close by clicking on the ‘Proceed’ button or preventing you from closing a position accidentally:
In addition to simply reflecting basic parameters of your position on the market, such as the required margin amount, leverage and position size, FlashFlow also allows you to tweak a few additional parameters in order to make your trading experience more comfortable and profitable.
Some of these parameters could be found by accessing the ‘Settings’ on the ‘Order Placement Module:’
From here, you can manually set the amount of gas you wish to be included in your transaction:
This would help greatly when executing trades, especially during times when the time of execution is of high importance or help saving funds when it doesn’t matter much how long it would take to process your transaction on the blockchain.
Additionally, from here you can manually set the slippage tolerance of your order:
Slippage tolerance would define the maximum amount of the price difference between the time of confirmation of the transaction and its confirmation.
Also, from the order placement module, you can see the amount of Protocol Fee that would be incurred to a position upon order fulfillment and the amount of hourly Funding Fee:
Additional parameters that’s worth your attention are reflected under the ‘Health Factor’ section:
Max Collateral Factor also known as LTV (Loan to Value ratio) reflects the most amount of money that a user can borrow in relation to their personal funds.
Max Liquidation Limit reflects the maximum threshold of the collateral currency which it can withstand prior to a position being liquidated.
