Futures Trading

The mechanics of Futures Trading are based on the concept of a traditional Orderbook.

When opening (building up) a position in Futures Trading, the required collateral (Collateral) is calculated as the difference from the transaction price to the corresponding Trading Range bound (the lower bound for a long position and the upper bound for a short position.).

When closing a Futures position, the Client returns the Collateral adjusted for the difference between the opening price and closing price.

When the Trading Range narrows for the Client, the Collateral size is automatically recalculated for the next transaction. The Client can also send an instruction to the Protocol to recalculate the amount of Collateral required.

Upon the expiration date, the calculation of profits and losses is based on the corresponding Fixing Price. If this price goes beyond the Trading Range bound, the settlement price equals the corresponding Trading Range bound.