Trading

The Trading feature within the Fuze platform allows Customers to convert one type of currency or digital asset into another.

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Seamless Asset Exchange In-Platform

Fuze's Trading capability enables users to easily swap between various supported cryptocurrencies, convert crypto to fiat (and vice-versa), or exchange between different fiat currencies. This is all done conveniently within the Fuze ecosystem.

This functionality is essential for portfolio management, accessing specific currencies needed for payments or transfers, or reacting to market movements, and serves as a core engine for building investment and exchange services.

Why Use Fuze for Trading?

Fuze's Trading APIs provide robust infrastructure for businesses aiming to offer digital asset conversion and investment services. Whether you're building an Over-The-Counter (OTC) desk, a crypto brokerage, or an investment application, Fuze serves as the backend engine:

• Power Investment & Exchange Services: Enable your users to invest in, diversify, and exchange a range of supported digital and fiat currencies. Manage quotes, order execution, and settlement programmatically.
• Seamlessly Integrated Ledgering: Trades instantly update balances within Fuze's internal wallets and accounts, ensuring accurate, real-time record-keeping for all trading activities.
• Foundation for Financial Innovation: Use trading as a core component to develop more sophisticated financial products, automated investment strategies, or tailored portfolio management tools for your clients.

The Trading Process: Quote and Order

To ensure clarity and protect users from price volatility, trading on Fuze generally follows a two-step process: obtaining a quote, then placing an order to execute the trade based on that quote.

1. Requesting a Trade Quote

• Purpose: Before committing to a trade, a customer first requests a quote to see the current conversion terms.
• How it Works: The customer indicates the currency pair they wish to trade (e.g., sell Bitcoin for USD, or buy Euros with USD) and the amount they want to convert (either specifying the amount to sell or the amount they wish to receive).
• The Quote: Fuze then provides a time-sensitive quote which typically includes:
  • The proposed exchange rate (conversion rate).
  • The precise amount of each currency involved in the proposed trade.
  • A unique identifier for the quote (quoteId).
  • An expiry time, as market rates fluctuate.

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  Quotes Expire!

  Exchange rates are dynamic. To lock in a rate, the quote must be accepted and the trade executed before the stated expiryTime. If a quote expires, a new one must be requested.

2. Creating an Order (Executing the Trade)

• Purpose: Once a customer reviews and accepts the terms of a valid quote, they create an order to execute the trade.
• How it Works: The customer confirms their intent to proceed using the quoteId. Fuze then attempts to execute the trade based on the agreed terms in the quote.
• Outcome:
  • If successful, the specified amount of the 'from' currency is debited from the customer's relevant internal wallet/account, and the 'to' currency is credited to their other internal wallet/account.
  • The executed trade (now an "Order") is assigned a unique orderId and will have a status (e.g., COMPLETED, PENDING, FAILED). The actual amount filled is also recorded.

Key Aspects of Trading with Fuze

• Supported Assets: Trading is available for a range of supported cryptocurrencies and fiat currencies held within Fuze internal wallets and accounts.
• Source of Funds: All trades utilize balances from the customer's existing Fuze-hosted holdings.
• Transparency: Exchange rates and conversion amounts are clearly presented in the quote before commitment.
• Order Tracking: Customers can typically retrieve the status and details of their past and pending orders.

Important Considerations

• Market Volatility: Exchange rates can change rapidly. The time-limited nature of quotes helps manage this.
• Sufficient Balances: Users must have an adequate available balance in their source internal wallet or account to cover the trade.
• Trading Limits: Limits on trade volume, frequency, or value may apply based on regulatory requirements or platform policies.
• Supported Pairs: Fuze will support a defined set of trading pairs. Not all currency combinations may be available for direct conversion.

How Trading Complements Other Fuze Services

• Funding Payments & Transfers: Users can trade into a specific currency if they don't hold enough of it for an intended Payment or Transfer.
• Managing Received Funds: Businesses or individuals receiving payments in one currency (e.g., crypto) can convert it to their preferred operating or local currency (e.g., fiat) for operational use or withdrawal.

By leveraging Fuze's Trading APIs, you can integrate powerful currency conversion features directly into your application, whether to complement existing services or to build a dedicated trading or investment platform.