For a long-side market order, the open loss requires the best ask price to estimate the assuming price. However, what happens if there is no ask price yet?
Long order: assuming price = ask[0] * (1 + 0.05%)
Apologies, but I’m not following your description, could you give an example case to be more specific?
Sorry, the question was not clear.
In a long-side market order, the open loss of a long order is calculated as follows:
Open loss of long order = Number of Contracts * Absolute Value {min[0, direction of order * (mark price - assuming price)]}
The assuming price of a long order is calculated as:
Assuming price of long order = ask[0] * (1 + 0.05%)
However, if there is no ask price available, such as with the first long-side market order trader, the assuming price cannot be calculated. In this case, is there any alternative method for determining the assuming price can be used?