FINERY EFX - F.A.Q.

 

TRADING

WHAT DO I NEED TO START TRADING?

You need to get access to the production environment https://efx.finery.tech/ and have the trading limits set. Please read this guidance on trading limits. If you have any questions, contact us at efx@finery.tech.

HOW CAN I MAKE A TRADE?

You can do it either in GUI or via API. In GUI, open Books tab where you can see a tradable order book, an order input form and last trades. Choose an asset and then specify price for limit orders, size, side and order type. Feel free to use the Client Order Id field if you need it.

WHAT IS THE DIFFERENCE BETWEEN TRADABLE AND GLOBAL ORDER BOOKS?

Global order book displays the aggregated liquidity provided by all market makers.
Tradable order book displays accessible liquidity and is unique for a particular taker. If a taker does not have sufficient free Global and/or Counterparty limits, a part of the quotes is not displayed and is not tradable. If a taker has sufficient free limits with all market makers, the Tradable order book will be equal to the Global one.

WHAT IS IOC AND FOK?

These are 2 order types. Market order is an order that must be immediately filled at any market price while Limit order is an order that must be immediately filled at the specified limit price or better. Market and Limit orders may be either IOC or FOK.

  • Immediate-or-Cancel (IOC). If it is not completely filled, the resting size will be cancelled. Partial fills are allowed.

  • Fill-or-Kill (FOK). FOK order is an order that must be immediately filled entirely. Otherwise, it will be totally cancelled. No partial fills are allowed.

DO YOU CHARGE ANY FEES?


No, takers pay 0% trading fee. The price you see in an order book is the final price. We do not charge any trading, withdrawal or deposit fees.

WHO IS A MAKER AND WHO IS A TAKER?

Finery eFX has a maker-taker concept. There are two types of the users on the Platform: a maker and a taker.

  • A market maker provides liquidity by posting quotes to the order book; it may use "limit" and "postonly" order types. Self-trades are prohibited.

  • A market taker consumes liquidity and may use "marketIOC", "marketFOK", "limitIOC" and "limitFOK" order types.

A maker's order may be matched only to an order of a taker; a maker-maker trading is prohibited. Thus, it may lead to a situation when the price of an ask order is lower than the price of a bid order.

 

POST-TRADE

WHAT IS POST-TRADE SETTLEMENT?

As a result of trading, the Platform calculates net positions to settle in real time. Post-trade counterparty settlement is peer-to-peer and may be in the form of a blockchain transaction, bank wire or alike. The Platform is never a side to any deal and is not involved in actual settlement. However, the Platform requires the information about settled trades in order to apply updated limits to trading. A settlement (see tab Settlements) is created when a settlement order is executed (i.e., settled). A settlement order is executed when a settlement transaction (see tab Transactions) is committed (i.e., confirmed) by a receiving trading party. 

CAN YOU SHOW ME AN EXAMPLE? 

Definitely. Please read Settlement Explained.

IS THERE ANY REPORTING? 

Yes, you will receive a daily statement showing your limits, open positions, trades and settlement.

​WHAT IS AN OPEN POSITION?

The sum of deals and settlements (i.e., settled deals) is an open position. 

For example, if you have bought 1 BTC for 10000 USD, your open positions are +1 BTC and -10000 USD; if then you have settled 0.6 BTC against 6000 USD and sold 0.4 BTC for 4100 USD, your resulting positions are 1-0.6-0.4=0 BTC and -10000+6000+4100=100 USD.

You can see your current open positions on the Trades tab. 

WHERE CAN I SEE MY ACCOUNT HISTORY?

You can find your latest trading history on the Trades tab. The latest Settlements are displayed on the Settlement tab. In addition, you will get a daily statement with trades and settlements by email.  

​WHY DO I NEED TRADING LIMITS?

The central part of the eFX concept is counterparty limits (please read Limits Explained). You can make a trade only if you have trading limits set and your free limits are positive. 

  • there are Global limits, which apply to the overall activity of a user, and Counterparty limits, which apply to a particular counterparty of a user

  • there are also Net limits and Gross limits

  • Net Limit Utilization is equal to the current P&L of all open positions

  • Gross Limit Utilization is equal to the max of an abs value of all short positions and abs value of all long positions

The values of each limit is defined by a user and applied by the administrator of the Platform.

When calculating utilization, the Platform takes into account open orders and unsettled transactions; worst case scenario approach is applied.

Available for trading Net/Gross limit equals Net/Gross limit minus utilization.

CAN I DEPOSIT OR WITHDRAW FUNDS?

No, Finery eFX is a non-custodial platform, however, you will need to settle your open position against a market-maker.

HOW CAN I SETTLE MY OPEN POSITIONS?

Finery eFX is a peer-to-peer platform with post-trade settlement. This means that trading parties settle open positions directly with each other. In order to facilitate the settlement process, the Platform provides for a protocol that allows:

  • Settlement Request, which is sending and receiving general requests for settlement;

  • Settlement Transaction, which is sending and receiving information about a particular settlement transaction.

Settlement Request can be sent to any counterparty with a mutual counterparty limit. It specifies only the asset that an initiator wants to receive.

Settlement Transaction is designed to send information about an actual blockchain transaction or a bank wire. Thus, it requires not only eligible counterparty but also an asset and its quantity: 

  • There is a restriction applied to adding a settlement transaction - the initiator must have a negative position in a specified asset against the counterparty, thus, the specified amount of the asset must be positive. The rationale here is that the initiator can add only such a settlement transaction that reduces the open position of a specified asset. Besides, an initiator cannot send more than it owes. 

  • Once a settlement transaction is added, a respected settlement order is created in the Platform; to send a settlement transaction an initiator must add TxId (it might be a hash of a blockchain transaction or a bank reference); once a settlement transaction is committed by the recipient, a respected settlement order is executed and a settlement deal is created in the Platform.

 

TECHNICAL

DO YOU HAVE A TESTING ENVIRONMENT? 

Yes, for testing in demo environment, please, visit https://efxdemo.finery.tech/ 

DO YOU SUPPORT API?

Yes, eFX Platform supports REST and WebSockets APIs for both view-only and trading purposes. For documentation visit https://efx.finery.tech/api/

 

Follow

  • Facebook
  • Twitter
  • LinkedIn

Contact

+357 9765 1174

Address

Valoriana Services LTD, HE393848
Vasili Vrionidi 6, Limassol 3095, Cyprus

2020 © Finery Tech