How token prices work on Starcks

Many of you have asked us for explanations on how prices are calculated on our Exchange. We have therefore created this guide to explain, as clearly as possible, how prices work and, above all, the aspects you need to consider before buying or selling your Tokens.

The price calculation method

The first thing to keep in mind when viewing the price is that it refers to the past and, more precisely, to the value of the last transaction made for that token.

It is historical data that refers to the past and therefore does not necessarily reflect the orders on the order book at the time you make your purchase.

What you need to look at before buying a token

If the price refers to the past, the most important thing to check before buying the token is the Order Book, which, on the other hand, refers to the future.

Here you will find a list of all outstanding sell orders created by sellers and the corresponding quantities.

This is essential information because it allows you to decide how many tokens to buy at the various levels available.

Here is an example to better understand how it works.

In the order book above, you will find various price levels at which sellers are willing to sell their tokens.

As a buyer, you automatically purchase tokens at the lowest price available on the market.

Let's say you want to buy 20,000 tokens.

To do so, you will fill the available quantities at 0.514, 0.519 and almost all of those at 0.524.

To plan your token purchase, always check the order book and choose the quantity based on the available price levels and your strategy.