Derivatives Trading Range

Each derivative has a fixed daily Trading Range. Trading Range refers to the difference between the upper and lower price bound within the period of one day. Profits and losses of market participants are limited to this daily Trading Range. This approach allows for calculating of the full risk for the Protocol and the Client (Collateral).

The Trading Range is recalculated daily after during the Fixing Price procedure. For an existing derivative, the Trading Range can only decrease in its width. The Trading Range is calculated based on the volatility of the given Spot Instrument.