Clearing and Settlement

Understand how trades change account positions and collateral, how self-trades are prevented, and how resolved markets settle.

Each account holds its own balances and positions. Trades update the account’s net position and collateral requirement.

Accounts and Collateral

Orders and trades always belong to an account. The account determines where the resulting position and collateral are recorded.

Use a transfer to move available cash between your accounts. A transfer does not move positions or open orders.

Offset a Position

Positions are netted within an account and market. An opposite-side trade reduces the existing position.

Reducing a position may release collateral. The exact change depends on the account’s other positions and the market relationship.

An opposite-side order offsets a position only after it trades with another participant. UDX prevents your own orders from trading with each other.

Prevent Self-Trades

Set self_trade_prevention_type on each order to choose which order gives way if the new order would match one of your resting orders.

If you omit self_trade_prevention_type, UDX uses placed. The incoming order is canceled when it would match your resting order, and the resting order stays open.

Self-trade prevention cannot be disabled. See Place an Order for the request field.

Resolution and Settlement

Resolution determines whether a market finishes YES or NO. Settlement then applies that result to the account’s remaining position:

• a winning contract pays $1.00;
• a losing contract pays $0.00; and
• the position closes after settlement.