developers:websocket:pricing

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developers:websocket:pricing [2025/03/14 22:36] – [Converting Price Differences to Cash Value] chaddevelopers:websocket:pricing [2025/03/14 22:39] (current) – [Converting Price Differences to Cash Value] chad
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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** 
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-This ensures that all price movements align with the market’s allowed increments. 
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-*Reference:* The **MinPriceIncrement** field is found in the **MarketDetails** message. 
  
 ===== Understanding Price Representation ===== ===== Understanding Price Representation =====
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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. To determine the cash value of a price movement, use the **Point Value**. This represents the dollar value of a single price unit.
  
-The formula is:+Formula:
  
-  **(Price2 - Price1) × PointValue = Cash Equivalent**+''(Price2 - Price1) × PointValue = Cash Equivalent''
  
-For example, if **PointValue** is **0.5** (as used in the ES market): 
  
-  * **Price1 = 4200.00** +Example:
-  * **Price2 = 4225.00** +
-  * **Point Value = 0.5**+
  
-  **(4225.00 - 4200.00) × 0.5 = 12.5**+<code> 
 +  Price1 = 4200.00** 
 +  Price2 = 4225.00** 
 +  Point Value = 0.5** 
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 +  (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**. 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. *Reference:* The **PointValue** field is found in the **MarketDetails** message.
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  • developers/websocket/pricing.1741991766.txt.gz
  • Last modified: 2025/03/15 02:26
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