> For the complete documentation index, see [llms.txt](https://docs.gammaswap.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.gammaswap.com/markets-and-trading/market-parameters.md). # Market Parameters ### Epoch An epoch is a fixed, repeating time window used to organize trading, finalize outcomes, and distribute payouts. For example, in 15 minute markets, each epoch lasts 15 minutes. At the end of the 15 minute epoch the resolution price is determined, the market is settled, and payouts are distributed. ### Price to Beat The price to beat is a rolling strike price based on the last price from the previous epoch. ### Current Price The current price is the price of the underlying spot asset supplied by the Oracle, in this case Pyth. ### Resolution Price The resolution price is the price of the underlying spot asset used to settle the market. In 15 minute markets, a price snapshot is taken every second in the last minute. The average of the 60 snapshots, one for each second, is used to determine settlement. If the average is above the price to beat, Up wins. If the average is below the price to beat, Down wins. ### Contract Price There is one contract for Up and Down. Up is long the contract price. Down is short the contract price. It resolves to $1 if Up wins and 0 if Down wins. The contract price is the midpoint of the best bid and ask on the order book. The minimum acceptable contract price in the exchange is $0.001 and the maximum acceptable contract price is $0.999. This means a bid can't be less than 0.1 cent and an offer can't be greater than 99.9 cents. ### Tick Size The minimum price change in the exchange. The tick size for short duration markets is 0.1 cents and 1 cent or higher for longer duration markets. This means in short duration markets, prices can only be quoted at the nearest tenth of a cent. ### Margin The amount of USD posted as collateral to open and maintain open a position. All open positions and resting limit orders are fully collateralized. Opposite side orders do not offset each other's margin requirement. This prevents the margin exchange from having to liquidate orders and ensure full payout to the winner of the contract. Since all open positions are fully collateralized, there are no margin calls. The formula for calculation the margin requirement of an order to open a position is as follows *margin for long = # of Contracts \* Contract Price* *margin for short = # of Contracts \* (1 - Contract Price)* Therefore, losses for a position are capped at margin and % returns are measured against margin. To post a resting limit order a user needs to have enough USD in his wallet to post margin. However, marketable orders that offset an existing position (i.e. a an order that reduces a position) uses the existing position to offset the margin requirement. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.gammaswap.com/markets-and-trading/market-parameters.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.