custom parameters
Trading in the dynamic #perpetual futures market requires swift adaptation, given that minor changes can have a deep impact.
Letβs look into the benefits of customized trading and how Parifi enables this.π§΅π
2/ Customized trading in the perpetual market brings numerous advantages, focusing on flexibility, #riskmanagement, and responsiveness to market shifts.
Key benefits include:
β’ Tailored risk management
β’ Reduced emotional bias
β’ Increased control
3/ Parifi prioritizes adaptability, allowing various modifications by traders or the protocol itself. This ensures efficiency and a secure, fluid experience.
4/ Traders can:
β’ Select leverage levels matching their risk appetite
β’ Utilize limit orders or set maximum slippage to mitigate risks associated with leveraged positions
β’ Make post-entry adjustments, like leverage recalibration or margin reinforcement
5/ On the protocol side, adjustments include:
β’ The liquidity Curve adjusts the asset price quotes in relation to the liquidity available in the pool for fair & stable pricing
β’ The deviation coefficient and the deviation constant adjust the curve based on different parameters
6/
β’ Fees are adjusted based on live market conditions
β’ Use of @PythNetwork's rapid price updates for real-time pricing algorithm and liquidity curve adjustments
β’ Maximum open interest, leverage, and exposure can be adjusted for each asset
7/
β’ Base Coefficient and Base Constant of the Base Borrowing Fee and the steepness constant of the Dynamic Borrowing Fee control asset volatility
All these create a balanced #trading environment, safeguarding the interests of all market participants and enabling high accuracy.
8/
Overall, customized #perpetual trading significantly enhances flexibility, risk management, and market adaptability, empowering traders to refine their strategies for improved outcomes.
Get ready to experience it all in the upcoming #Mainnet Beta!π
