Clearing and Settlement

Understand how trades change account positions and collateral, 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. Your own orders never trade with each other; see self-trade prevention.

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.