Trading Basics

How it works

Overview

Traders utilizing Sat.is have full ownership of their funds and positions throughout their trades.

When traders post their trades, their funds are locked in a smart contract and subsequently placed as an order to the order book in a single L2 transaction. Alternatively, traders have the option to break the above action into 2 transactions, that is to first lock up their funds in a smart contract (1 L2 transaction) and then place their orders on the order book (1 L2 transaction). The second option will double the amount of transaction fees and hence, will be more useful for algorithmic traders and when adding margin to opened positions.

In their wallets, traders can see the “locked amount” - the amount of funds locked in smart contracts which are under their control but not in their wallets. Traders can submit one trade after another by initiating different smart contracts for each trade.

When placing trades using market orders, traders’ trades will be immediately executed at best price, regardless of them being long or short trades. Traders’ “locked amount” on their wallets would be reduced and they can see the newly opened positions on the Sat.is platform if their wallets are connected to the exchange.

When traders close their trades (again using market orders), funds they are entitled to will be shown as “locked amount” on their wallets. Traders have to manually unlock the funds and release them into their wallets.