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Trading Guide

This guide explains how to trade on Speculite, how orders are executed, how fees are applied, and what happens at resolution.

1) Quickstart Workflow​

Typical flow for a new trader:

  1. sign in and complete onboarding
  2. choose a market and inspect the orderbook
  3. place a limit order (or market order for immediate execution)
  4. monitor fills, positions, and PnL
  5. hold through expiry/resolution or close position before expiry

2) Market Pricing Model​

Speculite markets trade as probabilities:

  • 0.00 means near-zero implied probability
  • 1.00 means near-certain implied probability

As order flow changes, market prices update continuously.

3) Reading the Orderbook​

Key values:

  • Best bid: highest resting buy
  • Best ask: lowest resting sell
  • Spread: best_ask - best_bid
  • Midpoint: reference between best bid and ask

Tighter spreads usually mean better execution quality.

4) Order Types and When to Use Them​

Order TypeBest ForTradeoff
Limit OrderPrice controlMay not fill immediately
Market OrderImmediate executionCan execute at worse price in thin books

Limit Orders​

  • you set price and size
  • order rests until matched, canceled, or expired
  • preferred for disciplined entry/exit and liquidity provision

Market Orders​

  • execute immediately against existing book liquidity
  • best when speed matters more than exact price

5) Maker vs Taker​

  • Maker: your resting order gets lifted/hit by another trader
  • Taker: your incoming order consumes resting liquidity

This distinction matters because fees are taker-paid and maker rewards depend on filled maker liquidity.

6) Fees​

Current baseline:

  • taker fee: 0.8% per executed fill
  • maker fee: none in the taker-only fee model

Example:

  • execution notional: $1,000
  • taker fee: $1,000 * 0.008 = $8.00

Part of taker fee flow funds maker and creator incentives.

7) Execution Quality Tips​

  • use limit orders in wide-spread markets
  • check depth before sending large market orders
  • split large executions across levels when liquidity is thin
  • avoid chasing price into low-liquidity moves

8) Market Lifecycle and Claims​

  1. Open: market is live and tradable
  2. Trading: orders match and settle
  3. Expiry: market stops active directional trading
  4. Resolution: final outcome is recorded
  5. Claim: winning balances can be claimed

9) Trading FAQ​

Do limit orders always fill?​

No. They fill only if contra-side flow reaches your price.

Why did my market order fill worse than expected?​

Likely due to thin depth at the best price level(s). Check orderbook depth before submitting.

Who pays fees on fills?​

Under current baseline, takers pay fees and makers do not pay taker fees.

Can I close before market resolution?​

Yes. You can exit by trading out of your position before expiry/resolution.

Where do rewards come from?​

From taker-fee flow. See Rewards Program.