1. How is the process of matched-trading conducted?
Orders are matched according to price-time priority, i.e. orders with more aggressive price (higher for buy, lower for sell) have higher priority for matching, and for orders with the same price, their priorities are sorted by submission time ascending. "Open Long" and "Close Short" orders belong to the bid side, while "Close Long" and "Open Short" orders belong to the offer side. On each side, the orders are sorted according to price-time priority. Matching happens when the highest bid price is higher than or equal to the lowest offer price.
2. What Happens After The Orders Are Matched?
Once an open long or open short order is matched, corresponding position(s) will be opened. The Average Position Price will be updated accordingly. Once an close long or close short order is matched, the system will reduce the volume of relevant position(s) on hold, and the average position price will remain the same,
Average Price = The Face Value of the Contract * ( Original Volume of Position(s) on Hold + New Volume of Position(s) on Hold ) / ( The Face Value of the Contract * Original Volume of Position(s) on Hold / Original Average Price of Position(s) on Hold + The Face Value of the Contract * The Number of Newly-Opened Position(s) / The average price of newly opened position(s) )
The Average strike price of Newly Opened Positions = The Face Value of The Contract * The Volume of Newly-Opened Positions / ( The Face Value of the Contract * The Number of Contracts of strike price 1 / strike price 1 + The Face Value of The Contract * The Volume of The Positions of strike price 2 / strike price 2 + ... )
The Volume of Newly Opened Positions = The number of contract(s) of strike price 1 + The number of contract(s) of strike price 2 + ...
For example: In case that the current latest mark price is USD$ 600, and the user holds 6 BTC long contracts, with the average opening price being USD$ 500.
The user then purchases another 5 open long contracts of BTC, with the strike prices of the 5 open long contracts listed as below:
Then the average strike prices of the 5 contracts mentioned above will be：100 * 5 / ( 100 * 1 / 580 + 100 *1 / 570 + 100 * 3 / 560) = 565.89
The new average price of new positions on hold will be: 100 * ( 6 + 5 ) / ( 100 * 6 / 500 + 100 * 5 / 565.89) = 527.95, and the new volume of positions on hold will be: 5+6=11