Speculation
Speculation on XCCY allows users to actively express views on interest rates, yield curves, and swap spreads.
Core Concept
Users can take long or short positions on interest rate movements.
Positions are expressed via swaps, derivatives, or structured instruments under the hood.
Unlike fixed deposits, speculation profits from changes in market rates rather than holding a guaranteed yield.
How It Works
Directional Swaps
Users can pay fixed and receive floating, or vice versa, depending on their market view.
Exposure is measured in DV01, so users know the sensitivity per basis point movement.
Open Orders & Risk
Collateral is blocked for the worst-case scenario of any pending order, one side at a time.
Margin mode (Isolated, Portfolio, or X-Mode) determines how efficiently capital is used.
Risk Controls
Maximum leverage and liquidation thresholds are enforced automatically.
Positions are tracked in the Risk Engine to prevent account-level overexposure.
Benefits
Opportunity to profit from market rate movements.
Full transparency of exposure and collateral use.
Works seamlessly with hedging and fixed-yield positions.
Supports active traders and professional users seeking alpha on rates.
Key Takeaways
Speculation lets users bet on rate changes while remaining within controlled risk parameters.
Exposure and margin are measured quantitatively, so there are no hidden surprises.
Integrates with XCCY’s fixed yield, hedging, and collateral systems for seamless management.
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