Spot Trading

The mechanics of Spot Trading is a combination of a classic Automated Market Maker (AMM) model (e.g. Uniswap v2) & a traditional Orderbook model. This approach eliminates the main disadvantages of each model and provides the most relevant price at any given time.

When registering a new Instrument, an Instrument Spot Pool of a minimum size is created.

Any Client can act as a Liquidity Provider and buy an Instrument Spot Pool Internal Token.

A Liquidity Provider can redeem previously purchased Instrument Spot Pool Internal Tokens at any time.

Fixing Price

Each day from 7:45 to 8:00 UTC (Specified Period), the price fixing procedure takes place. It is calculated as the weighted average price for transactions for the Specified Period.

If there are no transactions for the Specified Period, the price of the last transaction is recognized as the Fixing Price. The Fixing Price is used as the base price for various calculations for the purposes of Futures and Options Trading.

Volatility

The Spot section supports continuous calculation of hourly and daily volatility of the instrument price.

Upgrade to Derivatives

Any Spot Instrument can be upgraded to Derivative Instrument by any Client, provided sufficient statistics on the Spot Instrument have been gathered and the Spot Instrument has shown a sufficient level of trading activity within a certain period. More information on this mechanics will be provided.