Differences

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--- developers:websocket:pricing [2025/03/14 22:17] – created chad
+++ developers:websocket:pricing [2025/03/14 22:39] (current) – [Converting Price Differences to Cash Value] chad
@@ Line 1: / Line 1: @@
 ====== Pricing and Data Types ======
-The WebSocket API represents prices using the **Price** and **Decimal** types. Both of these types wrap a string value for precision and consistency across different programming languages.
+The WebSocket API represents market prices using the **Price** type, and cash values in the **Decimal** type. Both of these types wrap a string value for precision and consistency across different programming languages.
+<bootnote>
+Clients should parse **Price** and **Decimal** values into their programming language’s native **decimal** if available.
+</bootnote>
-Clients should always parse **Price** and **Decimal** values into their programming language’s native **decimal** type for calculations.
 ===== Price and Decimal Types =====
-The **Price** type is used for market prices, while the **Decimal** type is used for generic decimal values in messages. Both follow the same structure:
+The **Price** type is used for market prices, while the **Decimal** type is used for cash values in messages. Both follow the same structure:
   * **Price** – Represents a price in the market (e.g., bid/ask prices, last traded price).
@@ Line 13: / Line 16: @@
 Example representation:
-  * Price = `"4200.50"`
+<code>
-  * Decimal = `"5.25"`
+Price = "4200.50"
+Decimal = "5.25"
+</code>
-In all cases, clients should parse these values into **decimal** for calculations.
 ===== Proto Converter Tools =====
@@ Line 30: / Line 34: @@
 | **.Net** | [[https://github.com/CTS-Futures/t4-api-tools|ProtoConverters.cs]] |
+===== Understanding Price Representation =====
+The WebSocket API provides prices exactly as published by the exchange, using a **decimal format**. However, understanding price movement requires knowledge of **minimum price increments** and **point value calculations**.
+===== Minimum Price Increment =====
+Markets do not trade at arbitrary price levels; instead, they move in predefined steps known as the **Minimum Price Increment**. This defines the smallest amount by which a price can change.
+For example, if a market has a **MinPriceIncrement** of **25**, price levels would move as follows:
+  * **4000.00**
+  * **4025.00**
+  * **4050.00**
+  * **4075.00**
+  * **4100.00**
+This ensures that all price movements align with the market’s allowed increments.
+*Reference:* The **MinPriceIncrement** field is found in the **MarketDetails** message.
+===== Converting Price Differences to Cash Value =====
+To determine the cash value of a price movement, use the **Point Value**. This represents the dollar value of a single price unit.
+Formula:
+''(Price2 - Price1) × PointValue = Cash Equivalent''
+Example:
+<code>
+  Price1 = 4200.00**
+  Price2 = 4225.00**
+  Point Value = 0.5**
+  (4225.00 - 4200.00) × 0.5 = 12.5
+</code>
+This means a move from **4200.00 to 4225.00** corresponds to **$12.50 per contract**.
+*Reference:* The **PointValue** field is found in the **MarketDetails** message.