🗳️Trading Terms
Terms on Unich you need to know before trading
Last updated
Terms on Unich you need to know before trading
Last updated
Trading volume refers to the total transaction volume in a seller's or buyer's order, calculated using the formula: V = P×A
P: is the price of Point
A: is the number of Points to buy
To place an order, both the buyer and the seller need to deposit collateral into the smart contract, which initiates the transaction.
For Unich Pre-Market OTC, the formula to calculate the Collateral (the amount of collateral) that the buyer or seller needs to commit to executing a transaction is: Collateral = ½ Trading Volume
Trading volume: V = P×A
V: Trading volume
P: Transaction price
A: The number of Points to buy
The buyer provides the remaining 50% of the margin. The seller will deliver the full amount of the committed tokens at the Settle Time.
Examples:
The buyer executes a transaction to purchase 100 $UN tokens. (With the UN/USDC exchange rate being 2 on the Solana network).
At that time, the Buyer places an order with details as follows:
Order Type: Buy
Token Name: UN
Network: Solana
Token amount: 100 $UN
Price: 2 USDC
Volume: 100 × 2= 200 USDC
The amount the Buyer needs to collateralize to create the order is: 200 × ½= 100 USDC
Similarly, for the Seller matching with pool already available on the market.
At that time, the Seller matches with the Buyer as follows:
Order Type: Sell
Token Name: UN
Network: Solana
Token amount: 100 $UN
Price: 2 USDC
Volume: 100 × 2= 200 USDC
The amount the Seller needs to collateralize to match the order is: $200 × ½ = 100 USDC
Notes: However, the system will prioritize finding and matching orders with the best available prices, allowing the seller to sell fewer tokens and the buyer to purchase more tokens.
The formula for calculating Credit when an order is filled is: Credit = M
M is the number of Points matched for a trading pair.
Buyers and sellers can cancel their listed orders if they have not yet been matched. For matched orders, users can utilize the Cashout function. Read more about Cashout for detailed descriptions.
