Position Details
Last updated
Last updated
The yield which is computed on 1xMM Pools considers the ratio of positions (Long vs. Short); computation details have been provided on . The same concept has been implemented in the mini-game, but in a simpler way since there is no Term involve in the positions.
Users can see the ratio of positions between Long and Short:
In the screenshot above, users can see that the Long positions are less than the Short positions with a ratio of 0.64 to 1 (i.e. 0.64 Long for 1 Short). Logically, the ratio of Short shows a higher ratio with 1.56 Short for 1 Long.
Therefore, going on the Long side can provide a bigger yields to Long takers if the market goes up: the Long side will receive 1.56 times the option performance over the fixing period.
Additional details are available if a user clicks on the information icon (indicated by the red arrow in the screenshot below):
User can see the amount of Long and Short positions; this information can be useful for traders to calibrate the size of their trades.