The concepts of money-back-guarantee, or product warranty, are common practice in the retail world. The reason for this is clear – it increases buyer’s assurance and allows sellers to maintain a trust relationship with their clients. It’s a classic win-win situation and promotes engagement on both sides.
We at ORE are bringing this idea to the online trading world. ORE ECO – Electronic Cancellation Order – allows traders, importers and exporters to cancel their losing trades and get their money back. It works using an automated short-term “cancellation insurance” alongside the trade. The insurance cost is derived from the trade’s underlying asset using its current price, future price, implied volatility and other relevant data. To learn more see ORE pricing lab.
When a trader engages ORE ECO he essentially buys a cancellation insurance for a pre-determined period giving him or her the right to revoke the deal at any time during this period. If the trader chooses to revoke the deal the full cost of the cancellation is added to the Cancellation Insured portfolio. .
Want to see it in action? easyMarkets implemented ECO under product name dealCancellation on their web-based trading platform.
How it works:
ECO UI engagement is added to the order ticket. It contains an on/off switch and premium price quote. Using the ECO pricing algorithm, the user is quoted the ECO premium price alongside the spot rate quote. When an order is placed an additional order is sent via the ECO API for the requested premium. Once in place, the ECO value is updated constantly.
ECO is also added to the open positions report where the user may choose to invoke the ECO to close their Spot position at zero loss. When this happens, the trade is closed and the closing value is credited to user account covering the loss of the trade.
See usage examples in our blog
For further information and consultation please contact us
ECO Option is an ORE patent pending under the patent application number 62334455