Quote from: wcxofficial on April 09, 2019, 06:30:23 AM

Quote from: karim67 on April 08, 2019, 09:38:48 PM

How does it mean with no fees? How you make money?

There are 0 fees to place trades, deposit, or withdraw. The way we make money is through the bid-ask spread, which in most cases is even lower than an exchange's spread (and considering the fact an exchange charges a fee in addition to the spread).

What's bid/ask? What's the spread?

In any market, on any platform, the bid price is the price at which you can currently sell, and the ask price is the price at which you can currently buy. The spread is the difference between the bid and the ask.

If you were to buy at the ask price and resell immediately, you would resell at the bid price and hence your trade would be down by the (ask-bid), which is the spread. That's why the spread is considered a natural "cost" in any trading activity.

Liquidity pool why it's better than an orderbook

When you trade on WCX, the losses you make are added to a common liquidity pool, which in turn is used to pay out profits. Any time a transaction is made through the liquidity pool (adding loss or paying profit on a trade), the spread from that amount is retained.

As explained in our OP, in the large majority of cases, trading with a common liquidity pool is much more efficient and cheaper than trading an orderbook, because of the many costs you incur when placing a market order against an order book (in addition to the spread): slippage, getting filled at a worse price than you want, partial execution, and fees.

When trading "against" the liquidity pool, there are no fees, there is no slippage, and all orders are executed fully at the price that is quoted to you.

You can think of it as an always-accessible, automatic OTC desk with no minimum order size.

So how does it work then for shorting? how do I calculate profits, liquidation, like deribit?