The next step is to explain why we are creating two products. Our fist idea was to create Parimutuel Betting DAPP based on Blockchain contract with all business logic in this contract. It is Decentralized application with maximum security. And after announcement this product we get feedback what it does not have enough dynamics. In order to provide dynamics to our users we create completely new product - prototype of Spread Betting App. This prototype demonstrates how to make bets on the best Bid/Ask in Orders Book.
Let us now turn to the products functionality:
All calculations in ETH and STBT tokens.
For beta version there is three companies' stocks:
- Microsoft (MSFT),
- Google (GOOG),
- Apple (AAPL).
Bettors can place bet on the listed stocks they believe that will turn higher on the start of market in view of other stocks in the rally moment. To place the bet and claimed the reward bettors need to use Metamask plugin for Chrome / Firefox / Opera / Brave.
All operations are completely secured by the Blockchain contract. There is no one has control over the bettors' investments or process of stocks' rally.
This contract allows you to place bet on the price of NASDAQ listed stocks and win from bettors who not so smart as you.
This contract can control the funds, calculate the change of stocks with market close price and market open price plus one minute. Contract prepare reward for the winning bettors. The prices of stocks come from https://www.alphavantage.co as a main API, and Stocks.Bet API as alternative. The price set with Oraclize.it at the beginning (16:30 NY) and end of the bet period (10:00 NY).
All calculations in STBT tokens.
In the prototype we use top 200 liquid stocks of companies with listing on NASDAQ Exchange.
Let's look at the few example:
The Microsoft Corporation Stocks with symbol MSFT are trading at a buy price of 94.60 and a sell price of 94.65. You believe that the price of MSFT will rise, so you decide to go long on MSFT and set a bet of 10 STBT to the movement at 94.65.
The market proceeds to move in your favour and the sell price of MSFT rises to 94.65, so you decide to close your trade.
Your profit would be 10 STBT.
Advanced Micro Devices Inc Stocks with symbol AMD are trading at a sell price of 11.47 and a buy price of 11.40. You anticipate that the price of AMD stocks will decrease, so you decide to go short and set a bet of 10 STBT to movement at 11.40.
On this occasion, the market moves against you and the buy price for AMD stocks rises to 11.47, so you close your trade.
In this situation, your loss would be 10 STBT.