Search

What is Crypto?

EQUOS Academy: Crypto Explained

Perpetuals Trading Series: How EQUOS deals with liquidation

January 22, 2021

As we explained in the previous sections in this guide, an account is only able to send new orders as long as its Total Account Margin is higher than the Initial Margin required for all open positions and open orders. As soon as the Total Account Margin drops below the Initial Margin, the account can no longer send any new orders unless such order would reduce the existing position (e.g. a sell order, when the current position is long). To continue adding positions (e.g. add buy orders, when the current position is long), the trader will have to transfer additional funds that can be used for margin to their wallet, close open orders, or close open positions.

Perpetuals Trading Series: What is Basis and why is it important?

January 21, 2021

As we mentioned previously, perpetuals have a mechanism to ensure pricing aligns with the underlying spot product. We refer to the spread between the Spot and the Perpetual contract as Basis. The resulting exchange of payment between long and short holders of the contract is called the Basis Payment.

Perpetuals Trading Series: How does Marking work on EQUOS?

January 19, 2021

On EQUOS, we differentiate between the Market Price and the Mark Price of the perpetual. The Market Price is the last traded price of the product on EQUOS. The Market Price may deviate (significantly) from the rest of the market for example in case of large orders or an illiquid order book. The Mark Price gives a fairer value for the contract by taking a 3-second TWAP of the Market Price. A TWAP is the average of the open, high, low and close price for a specific period. In the case of the Mark Price these periods are three 1-second intervals. As the Mark Price is used for P&L calculation and to determine whether the position needs to be liquidated, using a TWAP to smooth out temporary spikes in prices should prevent unnecessary liquidations.

Perpetuals Trading Series: What are Perpetual Futures and why trade them?

January 18, 2021

Perpetual futures are futures contracts with no maturity, as opposed to dated futures, which expire at a pre-set date and time such as every month or every quarter. Any position in a perpetual future stays open until the trader decides to close the trade by executing an offsetting trade, or until the trade gets liquidated by EQUOS.

How Does Liquidation Work?

January 11, 2021

As touched on last week, the industry standard is to perform no credit checks on traders, and there is no recourse for a trader that has accumulated negative margin balance to make good on their losses. Because of this, the crypto trading industry introduced auto-liquidation as a layer of protection for the exchange against potential losses as well as a guarantee that winning trades are honored… But how does this really work?

Does Ethereum have an Inflation problem?

January 11, 2021

With the recent highs seen in the price of Ether (ETH), market validation of the smart-contract blockchain platform is strong. But as the price has risen, so has the question of ‘inflation’ on the platform.

The Evolution of the Cryptocurrency Derivatives Market

January 8, 2021

We believe the emergence of cryptocurrency derivatives is the inevitable evolution of the digital asset class and should contribute to reductions in volatility and enhancing market efficiency.

Introduction to Leverage, Margin, and Liquidation

January 7, 2021

Many virtual currency exchanges advertise the ability to trade products with leverage. In traditional finance, there are a number of popular leveraged products, such as ETFs. An ETF is a product that moves as a function of the underlying factor and the leverage factor. For example, an ETF that has 5x leverage will lose or gain 5% if the underlying asset moves by 1%. Leverage defines your position’s exposure to the underlying asset class.

Digital Assets Decoded: What are Consensus Algorithms — Proof-of-Stake

January 7, 2021

Kelvin Ting, Head of Blockchain Strategy

This is the fourth article of our Digital Assets Decoded series which aims to give you a fundamental understanding of the cryptocurrency space.

Manage Your Crypto Portfolio Like a Pro: How Advanced Tools Can Help to Manage Risk and Volatility

December 23, 2020

A major factor in the popularity and success of crypto trading is the extreme volatility of digital assets. The sudden giant price fluctuations in either direction present abundant trading and arbitrage opportunities that rarely exist in traditional markets.

Beginners Guide to Derivatives

December 19, 2020

What are derivatives? Derivatives have been around for millennia; their use can be traced back to ancient times when people bartered with one another to trade perishable goods such as grain and livestock[1]. They gained widespread popularity during the rise of the financial services sector, when newer valuation techniques were created in the 1970s and rapidly developed the derivatives market. It is difficult to imagine modern finance without derivatives now.

Understanding Diginex Access

December 17, 2020

Access is a digital asset trading tool from Diginex that has been built on top of existing institutional platforms. A future-proof, multi-asset class integrated solution for sales, trading, risk management, operations, and distribution across multiple venues. To request a demo, visit: https://www.diginex.com/diginex-acces...

Trading 101: How to Optimize Your Crypto Trading for the Lowest Cost, Starting with your Choice of Base Currency

December 11, 2020

For traders, the primary motivation when trading is undoubtedly to earn a return on investment. Unnecessarily high transaction fees can, however, deplete trading account balances and erode returns, and so, serious investors will always look to minimize extra costs.

Digital Assets Decoded: What are Consensus Algorithms — Proof-of-Work

December 7, 2020

This is the third article of our Digital Assets Decoded series which aims to give you a fundamental understanding of the cryptocurrency space.

What is Ethereum 2.0? Overview, Features, and Price Implications

November 27, 2020

The second-largest cryptocurrency by market cap, Ethereum, has had the most significant update in its 5-year history. A major milestone has been achieved on the path to ‘Ethereum 2.0’, also known as ‘Eth2’, which represents a pivotal development in the evolution of the Ethereum blockchain.