What does the DARWIN's quote mean?

The DARWIN's quote price is determined by the return obtained when replicating the trades from an underlying strategy.

Introduction

A DARWIN is a very special financial asset, whose quote price is not determined by the supply and demand of the market.

Its value is determined by the return obtained when replicating the trades from an underlying strategy. The volume of a trade, from opening to closure, isn't decided by the underlying strategy's trader, but by the risk manager designed by Darwinex.

The quote of a DARWIN can be seen...

1. On its profile

Every DARWIN is listed with a base of 100. This means that, at a DARWIN's inception, it quote price will always be 100.

quote LZL

2. On its return curve

In this curve reflects the return in terms of a percentage. This means that all DARWINs are listed starting at 0%.

LZL return

Case study

Let's look at the progress of the quote price over time.

Initial value

All DARWINs start with a quote price of 100, and a return of 0%.

Cotizanción 100

Replication

As the underlying strategy carries out trades, the DARWIN will replicate these trades with a position size determined by Darwinex's risk manager. The result of replicating these trades provides a return that will add to, or subtract from, the value of the DARWIN's initial quote price and its return.

cotización vs retorno

Value's progress

The percentage results for each month can be seen just below the DARWIN's return graph, in the ''Return/Risk'' tab.

retorno mensual y anual

Graph

We can also see the return curve of any DARWIN on its graph.

return LZL

 

  • If there are open trades on the underlying strategy, the DARWIN's price updates every 30 seconds.
  • The price shows what an investor would have theorically obtained if they had invested in the same currency as the underlying strategy, with an initial value of 100, and with an identical execution between the DARWIN and the investor - 0% divergence.
  • The value and the return of a DARWIN are calculated in terms of the opened and closed trades up to that precise moment, taking into account the commissions, the spreads, and the swaps.

Do you want to learn more?

If you want to learn more about DARWINs, and how to create on from an underlying strategy, we recommend this recording of a webinar presented by Juan Colón: