Hi and welcome to the BankEx Trading Demo In this screencast, we’ll show you how you how to use the BankEx Trading Trading application to trade Ethers for dollars

How does the Trading App work? The app is written using Smart Contracts on the Ethereum Network In this demo, we will use Rinkeby, a testnet on the Ethereum blockchain system This smart contract is built in Solidity and is available to users so they could review and understand the function of various Etherium applications The smart contract has a UI that allows users to try it out in test mode To get to the UI, you need to click on the BankEx link in the demo

To get to the Rinkeby blockchain, you need to install the MetaMask plugin and log in Here we have a MetaMask Wallet In MetaMask this product is available in the main Ethereum blockchain network, but for our demonstration we will use Rinkeby To use the demo, your Rinkeby balance must be positive Here we see a positive Ether balance in the wallet

After we log into the MetaMask wallet, we need to refresh the page Next, we go to the demo interface In this interface we can see our balance in the window here in Ethers to dollars Next, we see the exchange rate for Ethers from the automatically updated Bitfinex Exchange You can also trade Ether to Bitcoin

In this demo version, we can see active orders and open positions Here we see that there is an open SELL position for Ethers to dollars The open position has the value of $30151 for 1 Ether We see the size of the position

The minus sign means the position is open for sale We will be hedging the risk of the decreasing value of Ether against the dollar This 'Unrealized Profit Loss' is a profit that the user will receive when the position closes The 'Realized Profit Loss' is a realized profit on an already closed position The exact amount of money will be added to our demo user account

Here we see a ‘’close’’ button to close the position and the event log in the system We need close the position when we want to start a new order Let's place an order now Begin by pressing the 'place order' button Next we will see the 'entry' window

We can enter a position using two instruments – ETH to dollar or ETH to BITCOIN Next we need to choose what we would like to do – either to buy or to sell You might want to ‘SELL’ in two cases: 1) when you are relying on the decreasing exchange rate between Ether and dollars and want to make a profit from this, or 2) when you have Ether and want to know their dollar value The user can choose “sell” and input an order size according to the value of the portfolio to be hedged The second option, of course, is the ‘BUY’ option

This is for when a user wants to make more profit from the growth of the exchange rate between ETH and the dollar This is a classic “Contract for Difference” tool and it is used when a user doesn’t have open positions in ETH or dollars In this case, profit or loss corresponds to an actual trade as if the user had a contract in the real market in ETH or dollars This is a CFD This is a kind of analog to certain SWOP trades in which a user is included in a contract that can deliver profit or loss depending on the instruments with which the client buys the SWOP

For example, there is a total return SWOP – this is when a user receives the full exposure for any given financial instrument After we chose the direction of the transaction, we need to select an order type BankEx offers two types of orders: a market price order and a limited price order Next is the 'order size' For example, we can add

005 ETH It is essential that the order size be consistent with the actual write-off from the balance because we have to use this balance as a guarantee for possible user losses When the user closes the position, he will return the deposit with profits or losses This deposit is placed with the aid of leverage Here we can see that the available leverage is 1 to 2 or 1 to 3

Next, we click the “Submit” button to create an order Because the demo works in blockchain, MetaMask will initiate automatically after the order has been created and it requests to enter the blockchain system To make a record of the transaction, we click "Submit" and mining for the operation will start The mining of the block begins and we can see the transaction progress – that is how it's recorded This is very important

This way the user can see all his transactions and this builds credibility of the whole risk hedging system Finally, we can see here that the size of the position is consistent with the order that we made when we entered a position If we want, we can go to the hash of the operation and here we can see the source of the transaction, that is the address of the user MetMask wallet who just conducted the operation We can also see where the transaction will be sent Here we see that our transaction was sent to the wallet of the contract that has the code of this demo version

When we are done, we will get two confirmations that the operation is complete After this we can go back to the demo Take a look here – we see that size of our position just became 01, which means it was sold If you use BKX tokens, there will be no Ether commission for the transaction

And that’s the demo We’re BankEx, proof-of-asset-protocol Thanks for watching Stay tuned for more updates and demos