Pricing and Spreads
Prices displayed on the RockGlobal platform reflect available market pricing derived from underlying liquidity and participation at the time the price is shown.
These prices represent the interaction of buying and selling interest in the market and adjust continuously as conditions change.
Spreads reflect the difference between bid and ask prices and vary based on liquidity, volatility, and trading activity. Pricing is not fixed, and outcomes may differ from observed levels as market conditions evolve.
RockGlobal does not set or guarantee market pricing.
Market-driven price formation
Variable spreads reflecting conditions
No guaranteed prices or fixed spreads
Price formation mechanics
Prices are formed through the continuous interaction of buyers and sellers at different price levels. Bid and ask prices reflect the highest and lowest levels at which participants are willing to transact, based on available liquidity.
As orders enter the market, pricing updates in real time to reflect changes in participation, liquidity, and volatility. Price formation is therefore dynamic and should be understood as an ongoing process rather than a static quote.
| Pricing component | What it represents | What affects it |
|---|---|---|
|
Bid Price |
Highest price buyers are offering |
Demand, liquidity, volatility
|
|
Ask Price |
Lowest price sellers are willing to accept
|
Supply, liquidity, volatility
|
|
Spread |
Difference between bid and ask |
Market conditions and activity
|
|
Market depth |
Available volume at price levels
|
Liquidity and participation
|
Understanding spreads
Spreads represent the cost difference between buying and selling at a given moment and are derived from current market conditions.
They are not fixed values and may change throughout the trading day as liquidity and participation shift.
When liquidity is higher, spreads are typically tighter. When liquidity reduces or uncertainty increases, spreads may widen to reflect changing conditions.
Liquidity availability
Higher participation generally supports tighter spreads, while reduced liquidity may lead to wider spreads
Market volatility
Changes in participation and trading flow can cause spreads to adjust in real time
Time of day
Spreads may vary across trading sessions and periods of lower activity
Market events
Economic releases or unexpected events can temporarily affect spreads
The role of liquidity in pricing
Liquidity reflects the availability of buyers and sellers at different price levels. Pricing quality depends not only on liquidity being present, but also on its depth and stability.
Deeper liquidity typically supports smoother price movement and tighter spreads, while limited liquidity can result in greater sensitivity to order size and changes in participation.
Normal liquidity
Reduced liquidity
Volatile liquidity
Occurs during sudden market events, where pricing and available volume may change rapidly
How volatility affects pricing
Volatility reflects the speed and magnitude of price movement in the market. During periods of increased volatility, prices may change more rapidly and liquidity conditions may shift.
As volatility increases, spreads may widen and execution outcomes may differ from earlier observed levels. Pricing during these periods should be understood within the context of changing market conditions.
Volatility scenarios
Understanding trading costs
Trading costs may include spreads and, where applicable, commissions depending on the instrument or account structure.
These costs are influenced by market conditions and may vary over time. RockGlobal focuses on explaining how pricing and costs behave under different conditions rather than presenting simplified or fixed cost assumptions.
| Pricing component | What it represents |
|---|---|
|
Spread |
Difference between bid and ask prices |
|
Commission |
May apply on certain instruments or account types |
|
Market impact |
Indirect cost influenced by liquidity and volatility
|
What affects pricing and what does not
Pricing presentation involves both system processes and external market conditions.
| Broker-managed | Market-driven |
|---|---|
|
Platform price display |
Liquidity availability |
|
Operational infrastructure |
Supply and demand |
|
System stability |
Volatility and price movement
|
Pricing-related risks
Pricing risk is inherent in financial markets and includes the possibility of spreads widening, prices changing rapidly, or execution occurring at different levels than observed.
Outcomes depend on prevailing market conditions, including liquidity, volatility, and timing, all of which may change continuously.