Cointronix offers an online trading platform for Cryptocurrency which is a digital asset. Currently, the platform supports Buy and Sell functionalities for Market Orders and Limit Orders in which users can place buy and sell bids maintained in an open order book system which settles trades in the available digital assets and SGD Currency trading pairs.
Please note that the platform allows buying and selling of the digital asset only against the SGD and not with other fiat or digital currency.
Digital Asset Trading v/s Traditional Trading
Before moving forward with the technical details, let’s first understand the basics of digital asset trading and how it is different as compared to traditional methods of trading.
- In traditional methods, users are allowed to place trades in stocks, bonds, currencies, derivatives etc. whereas digital asset trading allows trading Cryptocurrency which is very closer to Forex trading.
- Unlike traditional currencies, Cryptocurrency are not bound to an institution or country and thus remains largely unaffected from the country economy.
- Cryptocurrency are currently more volatile when compared to traditional currencies but as more and more business start accepting and investing in Cryptocurrency, it will become more stable. Though from trading point of view, it offers much higher margin for gains for a smaller investment as compared to traditional Forex trading.
- When a user places an order to buy a specified quantity of Cryptocurrency with SGD at either market or specified rate.
- To place the buy order, user must have the adequate SGD balance necessary to buy the specified quantity of Cryptocurrency at the market/specified rate plus applicable trade fees.
- Rate at which user places the buy trade is termed as Bid price.
- When a user places an order to sell a specified quantity of Cryptocurrency at either market or specified rate.
- To place the sell order, user must have the adequate amount of Cryptocurrency balance.
- Rate at which user places the sell trade is termed as Ask price.
- A limit order is an order which is placed to trade a specified quantity of the digital currency at a specified rate
- A limit order is either be matched with the limit price or a better price. Or in other words
- A buy order will only be matched with the limit price or lower
- A sell order will only be matched with the limit price or higher
- A limit order is immediately placed on the open order book once and depending on the limit qty and price, it can either be a maker order, or a taker order or a mix of both (order that is partially a maker order and partially a taker order)
- Maker Order: When a user places a buy order below the highest ask price or places a sell order above the highest bid price, you are waiting for the prices to decrease or increase depending on either you are buying or selling. Such orders are considered as maker order and when filled, user will be charged the maker fee
- Taker Order: When a user place a buy order equal to or above the highest ask price or place a sell order equal to or below the highest bid price, it is filled immediately and is termed as a taker order. User will be charged the taker fee for such orders
Orders placed on the order book are prioritized on the basis of price. Buy orders are prioritized in decreasing order of prices with highest bid placed at the top and sell orders are prioritized in increasing order of prices with lowest ask placed at the top.
Orders with same prices are aggregated in the order book and are filled in First In, First Out (FIFO) manner. So, the order placed first among the other orders at same prices will be filled first.
- Limit Orders placed by user are immediately placed on the Order Book.
- Cointronix platform provides 2 separate table for Open Orders.
- User can keep at most 10 Open Orders for a specific currency.
- User can cancel the open orders before it gets completely filled.
- Platform doesn’t allow self-order execution. It means that if you place a buy order at some price, then you can’t place a sell order at the same price.
- Orders placed can be cancelled by Cointronix team in following conditions:
- In case of user trying to manipulate market (explained in market manipulation section) or using the order APIs (may not be existing currently but in future) in a manner affecting the functioning of the trading platform
- Erroneous transactions in terms of the quantity and price at which order is placed
- If the account is suspended or terminated under the scenarios listed in AML policy and Terms and conditions.
- Once the order is filled, it is final and cannot be reversed unless compelled to do so by any applicable law or regulation or in case of a serious technical error.
- To prevent market manipulation, an order can only be placed within +/- 20% of the current market price.
- We charge a trading fee in SGD for every order placed on the Cointronix platform. Fee is deducted only when the order is filled. If the order is still in order book and cancelled before getting filled, then no fees is deducted.
- Fee structure depends on if the order is a maker or a taker order. You can check the exact fees structure in the trade fees section.
- For buy order, trade fees is deducted over and above the buying bid amount.
- For sell order, trade fees is deducted from the amount earned by placing the order.
At Cointronix, we follow strict policy of providing a free and fair market to all of our users and any attempt made to interfere with the market operation will be dealt with harsh measures like asset freezing, account suspension or termination.
- Churning: User placing both buy and sell orders nearly at the same price to increase the price by attracting more traders.
- Pump and dump: Large scale buying of cheap coins by large position holders and then creating an artificial buzz around the specified coin to attract unsophisticated investors to drive the coin price and volume to higher points and then dumping back all the coins taking back all the duped investors money
- Ramping: Artificially raising the price and to give the impression of voluminous trading, in order to make a quick profit.
- Wash trade: Selling and repurchasing the same coin to generate activity and increasing the price.
- Quote stuffing: This involves quickly entering and withdrawing large quantities of orders in an attempt to flood the market, thereby gaining an advantage over slower market participants. Generally, done by using high frequency trading programs though high frequency trading is itself not illegal and thus any action would be taken in light of the nature and pattern of the transactions.
At Cointronix, we always ensure that our customers are having uninterrupted access to the website and trading book but as with any other technology service, there can be some unforeseen situations in which traders are having difficulty in placing/cancelling orders or taking time more than usual, then we may, in our discretion, take one or more of the below actions to ensure unabated access of trading book.
- Temporary disabling of deposits and withdrawals of the affected market
- Temporary disabling of trading API (may not be existing currently but in future) exposed to non-website interface users
- Temporary suspension of trading in the affected market also termed as “trade halting” or “Freeze mode”.
- During trade halt, all open orders will stand cancelled and the affected coin wallet will be freezed for any further transactions
- User will not be able to place any new order
- User will not be able to access the trading interface
- bit security