# Trading Terms

## Trading Volume

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

## Collateral

To place an order, both the buyer and the seller need to deposit collateral into the smart contract, which initiates the transaction.

<figure><img src="https://828365766-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Fq2QWQYNt3GiuTfj38Qpv%2Fuploads%2F24Odp4ft2ijWIK3mwDAM%2F17.jpg?alt=media&#x26;token=f95e20bd-dfb8-4eb8-88e5-233c48352156" alt=""><figcaption></figcaption></figure>

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:*&#x20;

The buyer executes a transaction to purchase 100 $UN tokens. (With the UN/USDC exchange rate being 2 on the Solana network).

<figure><img src="https://828365766-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Fq2QWQYNt3GiuTfj38Qpv%2Fuploads%2Fospzr813BJ2uTHT4lhms%2F18.jpg?alt=media&#x26;token=a8603f49-71fa-4b26-a1f1-911e1caf3377" alt=""><figcaption></figcaption></figure>

At that time, the Buyer places an order with details as follows:&#x20;

* **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:&#x20;

* **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.

## Match Order

**Full Order Matching** occurs when both the buyer and seller match the entire trading volume of the order.

**Partial Order Matching** occurs when both the buyer and seller match only part of the trading volume of the order.

Examples: the buyer is selling 100 UN Points at a price of $2. An order currently available on the market is waiting to be matched with a volume of $200.

* **Order Type:** Sell
* **Token Name:** UN
* **Network:** Solana
* **Point amount:** 100 UN Points
* **Price:** 2 USDC
* **Volume:** 100 × 2= 200 USDC
* **Collateral:** 100 USDC

<figure><img src="https://828365766-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Fq2QWQYNt3GiuTfj38Qpv%2Fuploads%2Fcfyd7IUifibiwkm5nUMt%2F21.jpg?alt=media&#x26;token=2f265a73-4495-4837-81c8-bbf0d9b9e51b" alt=""><figcaption></figcaption></figure>

Buyer 1 can partially match the above trade with 5 UN Points, equivalent to Volume: $10

* **Order Type:** Buy
* **Token Name:** UN
* **Network:** Solana
* **Point amount:** 100 UN Points
* **Price:** 2 USDC
* **Volume:** 5 × 2= 10 USDC
* **Collateral:** 5 USDC

Buyers 2, 3, ... n will continue matching orders until the entire order of the seller is filled.

Matched orders will change to a **filled status**, and the settlement process will begin at the time of the Token Generation Event (TGE).

## Credit

The formula for calculating Credit when an order is filled is: **Credit = M**

*M is the number of Points matched for a trading pair.*

## Cancel Order

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.


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