Position Creation 📈
A walkthrough for creating all types of positions on 0xdx
Position Parameters
Collections
0xdx currently has three blue chip NFTs available for speculation: Bored Apes, Azuki, or Pudgy Penguins 💎
Buy or Sell
The “Buy” button allows you to create a bid. By choosing to buy an option you are speculating on the price to go up (long) or down (short). As a buyer, you pay a premium to gain the right to speculate on the price of the collection at expiry.
The “Sell” selection allows you to create an ask. By choosing to sell an option you are looking to collect a premium from the buyer to allow them to take a position long or short. As a seller, you need to post ETH as collateral.
Order Size & Order Price
The Order Size enables flexible position sizing. When the Order Size is multiplied by the Order Price (or premium price), it creates the total size (or total price) of the position.
The Order Price is set as a premium price for the collection (independent of Order Size) and the Order Size enables flexible position sizing.
Position Sentence
The position sentence is designed to bring clarity to the position you are taking whether you are a buyer or seller of an options contract. In the image above, the user wants to purchase a Call option (go long) and thus, they are bullish.
Submitting Orders
Prior to submitting an order you will need to claim your test ETH and deposit all or part of the claimed amount as collateral.
After you have specified the parameters for an order (Call option with a 0.1BAYC order size & 1.1 ETH order price, Expiry Date: 2023-04-15), clicking the Create Order button you will trigger the dialog box below:
After clicking the Sign button, you're connected wallet will either ask you to switch to the Arbitrum Goerli network if you aren't on it already or will directly request a signature to submit the order. There are no gas fees associated with signing this transaction.
After clicking Submit Order, your order will either get filled if there is sufficient liquidity for your order within the current bid-ask spread in the Order Book which will be seen under "Trades," or the order will stay open if it's outside the current bid-ask spread and will display under Order Book. If your order gets filled, it will be added to the Positions table.
Filling Open Orders
Positions for a given option type can also be created by interacting with the orderbook.
By clicking on the 1.22 ask, it will automatically populate the trade dialog box with the size of all orders at or below the 1.22 order price.
Using the same asks from the order book above, when you click on the 1.15 ask, it will automatically populate the trade dialog box with the size of all orders at or below the 1.15 order price - in this example only orders at 1.15.
Pre-populated orders can then be modified with a different order price or an order size that would trigger a partial fill similar to creating a position from scratch.
Cancelling Orders
To cancel an order, click on Open Orders in the table at the bottom of the page. In the far right of the table you will see a fire emoji button that will allow you to cancel your order.
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