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Basics

Trading


What is 1Fox?

1Fox is a platform where you can trade derivatives on the most prominent cryptocurrency markets, like the Bitcoin-settled BTCUSD contract. Similar to the trading of Futures, you can directly participate from price movements with leveraged trades and low fees. Our funding system keeps the traded price on 1Fox in line with the underlying price and makes periodic settlements (like in Futures markets) unnecessary.

Can I exchange my cryptocurrency on 1Fox?

No, 1Fox is not a cryptocurrency exchange and you cannot convert your funds. When depositing Bitcoin, for example, you can only place trades on our Bitcoin-based markets all profits/losses are directly credited in Bitcoin.

Where does the name 1Fox come from?

1Fox is a sister project of our CFD trading platform 1Broker.com. The name 1Broker comes from the format of traditional Bitcoin addresses (public keys) which usually start with "1". Originally, we intended to name the project 1Gox (Global Online Exchange). Due to heavy criticism by our community, the name was later changed to 1Fox.

What is Bitcoin?

Bitcoin is a P2P (Peer to peer) digital currency which was released as open-source software in 2009 and an accepted deposit currency on 1Fox. Bitcoin enables users to send and receive payments without the need for a middleman, or central authority. The price of a Bitcoin is based on demand and supply.


Trading

What is the difference between long and short?

When trading, you have two options: Going long or going short. When you take a "long" position, you will profit from the price increasing from your entry price. When you take a "short", you will profit from the price decreasing from your entry price.

What are leveraged positions?

Leverage is a technique to multiply gains and losses. On 1Fox, the leverage is adjustable when you create an order. Using a leverage of 1 means maximum safety and is usually used for longer-term trades. High leverages, however, can increase both profits and losses dramatically and can also be used to reduce counterparty risks, since only a portion of your position size has to be deposited on 1Fox. In relation to your investment, higher leverages also lead to higher funding charges. You can use our Profit/Loss Calculator to get a better understanding for leverages.

Example: If you open a 2 BTC long position on the BTCUSD market with a leverage of 5, it means that your total position size is 10 BTC (2 BTC x 5). If the BTCUSD price rises by 10% you would profit with ~0.9 BTC. Compared to your investment of only 2 BTC this would be a ~45% gain.

Please make sure you understand that risks when trading with high leverages.

What are the trading fees?

All fees are listed on our Fees page. There are no other hidden costs, when using 1Fox.

What is the funding system?

Our funding system aims to keep the traded price on 1Fox in line with the underlying index price. 1Fox does not charge any fees with the funding system - funding payments are exchanged hourly directly between long and short positions and are deducted from the position's profit/loss. The rates are constantly recalculated depending on the price difference between 1Fox and the underlying index price.

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Can I lose more than invested in a position?

No! All positions are assigned with a forced Stop Loss price, where your position gets closed automatically, if the market moves against your trade too much. Since the Stop Loss price is not a guaranteed exit price, there is the possibility that your positions are closed with a negative value, especially if markets move very fast.
However, negative values are not credited back to your account but are deducted from other market participants as socialized losses (see next question).

What are socialized losses?

When a position is closed with a negative value (this means that trader lost more than the initial investment), the negative amount is added to a socialized loss queue and deducted hourly from opposing traders' positions. If the socialized losses in one hour would exceed 0.1% of the position size, they are deduced in smaller batches over time.

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