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--- developers:websocket:pricing [2025/03/14 22:36] – [Converting Price Differences to Cash Value] chad
+++ developers:websocket:pricing [2025/03/14 22:39] (current) – [Converting Price Differences to Cash Value] chad
@@ Line 35: / Line 35: @@
-===== 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.
 ===== Understanding Price Representation =====
@@ Line 80: / Line 60: @@
 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**
+  (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.