Margin traded issues

Trading derivatives

Investment products such as derivatives require traders to put up margin money which is a fraction of the value of any trade. Since trading is entirely on chain and traders can suffer a loss, the Margin issue manager contract on the Verified Network also requires traders to specify a stop loss price on the products they trade. A collateral amount that is calculated based on the stop loss is also required to be staked by the trader in the Margin issue manager contract.

Margin traded products can be fulfilled offchain and settlement of profit and loss on trading accounts is done by issuers of margin traded products.

Both market and limit orders are supported in Margin issue pools on the Verified Network. Orders can be added, edited and cancelled by users on the Verified Network. Trades (Orders that are matched) need to be settled by the counterparties to the trade (ie, by both the buyer and seller). Market data, data on orders and trades for margin pools can also be fetched using the REST APIs.