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developers:websocket:pricing [2025/03/14 22:20] – chad | developers:websocket:pricing [2025/03/14 22:39] (current) – [Converting Price Differences to Cash Value] chad | ||
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- | Clients should | + | Clients should parse **Price** and **Decimal** values into their programming language’s native **decimal** if available. |
</ | </ | ||
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Example representation: | Example representation: | ||
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- | * Price = `" | + | < |
- | | + | Price = " |
+ | Decimal = " | ||
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| **.Net** | [[https:// | | **.Net** | [[https:// | ||
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+ | ===== Understanding Price Representation ===== | ||
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+ | 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**. | ||
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+ | ===== Minimum Price Increment ===== | ||
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+ | 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. | ||
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+ | For example, if a market has a **MinPriceIncrement** of **25**, price levels would move as follows: | ||
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+ | * **4000.00** | ||
+ | * **4025.00** | ||
+ | * **4050.00** | ||
+ | * **4075.00** | ||
+ | * **4100.00** | ||
+ | |||
+ | This ensures that all price movements align with the market’s allowed increments. | ||
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+ | *Reference: | ||
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+ | ===== Converting Price Differences to Cash Value ===== | ||
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+ | To determine the cash value of a price movement, use the **Point Value**. This represents the dollar value of a single price unit. | ||
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+ | Formula: | ||
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+ | '' | ||
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+ | Example: | ||
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+ | < | ||
+ | Price1 = 4200.00** | ||
+ | Price2 = 4225.00** | ||
+ | Point Value = 0.5** | ||
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+ | (4225.00 - 4200.00) × 0.5 = 12.5 | ||
+ | </ | ||
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+ | This means a move from **4200.00 to 4225.00** corresponds to **$12.50 per contract**. | ||
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+ | *Reference: |