Neil Sheppard, COO of Financial Services at Diginex, and Anthony Pompliano discuss Diginex, derivatives, risk management, capital efficiency, and EQUOS.io. Learn about Neil's background, the Diginex ecosystem, derivatives, and how EQUOS benefits all traders.
Watch our CEO Richard Byworth and SkyBridge Capital Founder and Managing Partner Anthony Scaramucci discuss the new era of cryptocurrencies on the AIM Summit, as they delve into mainstream digital asset adoption, likely price movements, market regulation, and the role of crypto exchanges.
Diginex Limited (Nasdaq: EQOS), the digital assets financial services company, announced today that it has entered into a strategic partnership with GSR Markets (GSR), a leading global market maker for cryptocurrency spot and crypto derivative markets.
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.
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.
The massive rally in cryptocurrencies is almost unrecognizable from three years ago. When the Bitcoin (BTC) price marked its all-time high just shy of $20K in December 2017, it was exclusively retail-driven. Regulation was scant and insufficient; hacks, scams, and Ponzi schemes abounded; investors made (and lost) a lot of money overnight; and major financial institutions like JPMorgan were steadfast in calling BTC a "fraud" and a "bubble."
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.
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.
One of the most important trends in the cryptocurrency industry over recent months has been a notable rise in corporate treasurers buying Bitcoin (BTC) as a balance sheet asset. Against the backdrop of a failing global economy and a weakening global reserve currency (the USD), both publicly listed and private companies are beginning to diversify from traditional low-risk assets such as bank deposits, treasury bills, and commercial paper to find a more effective balance between risk and yield.