Dear Darwinex Community,
I have a suggestion which will increase the capacity of a Darwin and also somehow reduce risk for investors.
Which is: Darwinex allows investors to use their capital to increase capacity for a Darwin, together with LMAX liquidity pool. Liquidity from investors will be given priority over LMAX’s.
Darwin ABC and its investors’ funds buy 1 lot of EURUSD. Normally, LMAX will absorb this long position.
Investor X believes that Darwin ABC is going to lose, so he presses the button “increase capacity” and add 10,000 USD to Darwin ABC.
So, Darwin ABC is now long 1 lots EURUSD, investor X is short 0.1 lot EURUSD and LMAX is short 0.9 EURUSD.
If Darwin ABC is right, investor X will lose money, he can choose to get out of the trade by selling it to LMAX.
Reversely, if ABC is wrong, investor X will make money together with LMAX and can get out of the trade any time.
Investor X doesn’t have to pay commission by making an opposite order with Darwin ABC but he has to pay commission when he decides to get out of this trade.
Investor can also reduce their risk
Darwin will increase capacity.