KF Index
KF-Index: Create and trade your own
instruments
Cryptocurrencies are a new and growing asset class that is quickly gaining in popularity. But everyone is trading the same instruments on the same exchanges. What if you could create and trade your own instruments? The Kingfisher Platform allows you to do just that! It’s simple to do and easy to explain. In this article, I’ll show you how to easily create and trade composite indexes on the Kingfisher in a few clicks.
What is a composite index?
A composite index is an index that is made up of multiple individual indices that are weighted by certain criteria in order to measure the overall performance of a group of assets or cryptocurrencies. These weights determine how much of the value attributed to each asset contributes to the overall value of the composite index.
Why trade a composite index?
By combining Longs and Shorts of different cryptocurrencies, we can create complex instruments and strategies which are impossible to replicate using only longs or shorts of a single cryptocurrency. This gives us access to more complex and volatile markets, that can match your volatility and behavior expectations. For example, it is entirely possible to create a statistically mean-reverting index.
How to create and trade composite indexes on thekingfisher.io?
Creating an index:
1- Open the KF Index manager, by default we load up an auto generated Long Short pair.
2- Select Basket, and create a new index. A menu to select the products you want to incorporate into your index will pop up .
3- Select the crypto assets you want to include in the index from the drop-down menus
4- Assign to the selected assets the weighting you want to use for each asset (negative numbers will indicate a short).
5- Click save, then click the newly created index
Executing an index trade
6- Connect your existing API keys, or add an “API Instance”
7- You can now enter a size to execute, and Short or Long it! the size will be divided between the different selected instruments, depending on the given weights.
8-Select if you want to Long/Short then place orders, this will send market orders to the exhcange
8- You can easily track your open positions under the chart (red box), and close them by ticking the box on the right then confirming by clicking the “green tick” at the top (green box)
9- you can force a refresh of the positions by hitting the refresh button (yellow box)
A few things to keep in mind
- There might be slight size discrepancies as the exchanges’ minimum sizes are different for each instrument. - All orders are market orders — mind the exchange fees! - When executing, be aware of your existing positions on the exchange — KF will execute “over them”.
Going further: BetaPlay
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