Order Entry Risk Management
- Position Limits Per Contract, Per Account: Risk managers can set pre-trade risk controls on a per contract, per account basis to prevent accounts from exceeding net long or net short position limits. Prevents new orders from being placed that, if matched, would exceed set position limits. Position limit settings are reflected immediately after configuration. If position limits are set to zero, only liquidating orders can be sent to the exchange. Participating FCMs are able to submit start of day position files to the exchange for accurate positions per contract, per account.
- Cancel-on-Disconnect: If a connection is dropped, the respective open orders are canceled and missed fills may be discovered via drop copy and Position REST API (not yet available in the Test environment). If a participant connects to the Exchange through a CQG connection the same functionality is in effect.
- A-B Connectivity: Order entry gateways and pricefeeds are provisioned and permissioned in primary
Aand backupBpairs. This protects against software or hardware connectivity failures and ensures there's always a view of the market and a way to trade out of positions. Unfilled orders are not shared between these connections because of cancel-on-disconnect. - DR Backup: A full production exchange instance is provisioned and on standby in case of a data center or matching engine failure.
- Self Match Prevention (SMP): By default, every account has self-match prevention enabled. In the event that a participant’s aggressing order would match with a resting order from the same account the passive order will be cancelled. The Exchange does not allow participants to disable this functionality. To enable SMP between other accounts, please email help@exchange.bitnomial.com.
- Message Throttling: A connection is only allowed to send 500 messages in any given 3 second period. Any messages
sent that exceed the rate given by this threshold will be rejected with a
Messaging rate exceededreason, except for cancel messages. Cancel messages count towards the message limit but will not be rejected. - Maximum Order Quantity: Each product on the Exchange has a maximum allowable order quantity. Please see the individual product specifications
Dynamic Price Bands
The Dynamic Price Bands are used to prevent a single aggressive order from trading through too many price levels in a trade. If an order is submitted that would create a match event violating the Dynamic Price Bands, the order is rejected by the matching engine.
Price Band Variation
Price Bands are a per-product price range for aggressive orders based on the latest top-of-book price. If there are no orders on the book then the price bands do not apply. Once there are orders on the book the initial Price Bands are based on the latest top-of-book price +/- the Price Band Variation which is set by the Bitnomial Market Operations & Risk Team. The Price Band Variation range is continuously re-calculated from top-of-book.
Price Limits
Price Limits are a per product price range based on a percentage of the previous day settlement price. If a trade occurs at the Price Limit for a side, the matching engine triggers a timer. If the timer elapses and no trades occur inside of the Price Limit, the Price Limits are re-calculated and reset. The resultant Price Limits are outside the original Price Limits to allow for additional price movement. The Exchange Market Operations & Risk Team may adjust the daily Price Limits at its sole discretion based on market conditions.
Current Price Bands & Limits
| Product | Price Band Variation | Price Limit (the greater of) |
|---|---|---|
| BUS | $1000.0 | 50% or $10,000 |
| BUS-BUS | $200.00 | 50% or $5,000 |
| BUI | $1000.00 | 50% or $10,000 |
| BUI-BUI | $200.00 | 50% or $5,000 |
| BUSO | $1000.00 | 100% or $10,000 |
| HUP | $10.00 | 50% or $40 |
| HUP-HUP | $5.00 | 50% or $20 |
| ETUD | $25.00 | 50% or $300 |
| ETUD-ETUD | $5.00 | 50% or $150 |
| ALUK | $0.25 | 50% or $3 |
| ALUK-ALUK | $0.05 | 50% or $1.50 |
| BCUH | $4.00 | 50% or $40 |
| BCUH-BCUH | $0.80 | 50% or $20 |
| CLUK | $0.20 | 50% or $2 |
| CLUK-CLUK | $0.04 | 50% or $1 |
| LTUH | $1.00 | 50% or $12 |
| LTUH-LTUH | $0.20 | 50% or $6 |
| SOUH | $1.50 | 50% or $20 |
| SOUH-SOUH | $0.30 | 50% or $10 |
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Signing up with Bitnomial, Inc. requires additional verification with an FCM to trade futures. Futures accounts are offered by Bitnomial Clearing, LLC, a CFTC-registered FCM and NFA member. Trading in futures involves substantial risks. You should only trade in financial products that you are familiar with and understand the associated risks, and after carefully considering whether such trading is suitable in light of your investment experience, financial position, and investment objectives. Leverage in futures trading can work for you or against you. The risk of loss using leverage can exceed your initial investment amount. See Bitnomial entity affiliation and registration disclosures and FCM financial and risk disclosures.