Trading

Trading on Speculation revolves around placing and managing positions within peer-to-peer markets. Each trade represents a belief in a specific outcome, and orders determine how you express that view

Market Orders

A Market Order executes immediately at the best available price. When a user places a market order, the platform matches it with the most favorable opposing order currently available in the order book.

Market orders are ideal for traders who prioritise speed and certainty of execution over price precision. However, due to variations in market liquidity, execution prices may differ slightly from the last quoted price, a phenomenon known as slippage.

In summary:

• Executes instantly at the best available price.

• Ensures entry or exit but may result in minor price deviation.

• Commonly used when timing is critical.

Limit Orders

A Limit Order allows users to specify the exact price at which they are willing to buy or sell a contract. Unlike market orders, limit orders only execute when the market reaches the user’s chosen price, ensuring full control over the entry level but without guaranteeing immediate execution.

Limit orders are well-suited for traders who prioritise price accuracy and are willing to wait for optimal market conditions.

In summary:

• Executes only at or better than the specified price.

• Offers precision but may remain unfilled if the market never reaches that level.

• Commonly used to manage risk and maintain disciplined entry points.

Order Matching and Execution

All trades on Speculation are peer-to-peer, meaning every order is matched against another participant’s opposing position. The platform’s matching engine ensures fair and transparent execution, updating odds and the cumulative market forecast in real time as new trades occur.

Once executed, positions are reflected in the user’s portfolio, where they can monitor open contracts, track settlement times, and view potential outcomes