Oddsfutures' counter-party stop loss mechanism
Oddsfutures operates a counter-party 'stop loss' mechanism designed to:
- Protect customers from extreme price movements
- Allow customers to trade only up to the amount available in their wallets: keeping you total control of your risk exposure.
The principles of this mechanism are as follows:
- When buying odds prices, your profits are limited to the total amount of your stake, and your losses to 50% of the amount of your stake.
- When selling odds prices, your profits are limited to 50% of the amount of your stake, and your losses to the total amount of your stake.
- If the price in any given trade moves above or below the limits above, any profits or losses incurred in that trade are frozen accordingly. The contract value and any ensuing profits or losses may fluctuate again once the price moves back within the limits.
For example
You buy a €100 stake at a 10.0 contract price. You expect the price to decrease.
- If the oSP* price goes down to 6.0, then your payout is €66.67
- If the oSP* price goes down to 5.0 or below, your payout is €100
- If the oSP* price goes up to 15.0, then your loss is €33.33
- If the oSP* price goes up to 20.0 or higher, your loss is capped to €50
You sell a €100 stake at a 10.0 contract price. You expect the price to increase.
-
If the oSP* price goes down to 6.0, then your loss is €66.67
-
If the oSP* price goes down to 5.0 or below, your loss is €100
-
If the oSP* price goes up to 15.0, then your payout is €33.33
-
If the oSP* price goes up to 20.0 or higher, your payout is capped to €50
Notes:
