PlusX Learning Hub

Rung 2 of 7

Curious

Reading time: about 2 min You will need: The words NTZ, buy edge, and sell edge.
official No-Trade Zone guide; official LPX overview; official LPX whitepaper

Move the market price

Drag the slider or use the arrow keys. The dot follows the price path. The band only moves after the price passes an edge.

official No-Trade Zone guide; official LPX overview
Interactive No-Trade Zone explorer A price dot moves along a fixed path across a buy edge, a hold band, and a sell edge. sell edge buy edge hold
The dot is the market price. The shaded band is the No-Trade Zone.

Inside the band: the pool holds.

This is a simulation on this page only. Nothing touches a wallet.

  • Inside the band: the pool holds.
  • At the sell edge: the pool sells Fund, gains Anchor.
  • At the buy edge: the pool buys Fund, spends Anchor.
  • Past an edge: the band steps once so it can keep following price.
Ratcheting band diagram Three equal bands step upward. Arrows show the band following the price after trades. band before trade band moves same size higher up band follows the price
Ratcheting means the band moves after a trade. Its size stays the same.

The quiet band

official No-Trade Zone guide; official LPX overview; official LPX whitepaper

The No-Trade Zone is a price band. Inside it, the pool holds.

The NTZ is the quiet area where the pool waits.

The edges

official No-Trade Zone guide; official LPX overview; official LPX whitepaper

At the sell edge, the pool sells Fund. At the buy edge, the pool buys Fund.

High edge sells. Low edge buys.

The honest risk

official No-Trade Zone guide; official LPX overview; official LPX whitepaper

If price moves one way and does not return, LPX can end behind simply holding the token.

If price only moves one way, LPX can do worse.

Self-check

official No-Trade Zone guide; official LPX overview; official LPX whitepaper

What happens inside the NTZ?
When does LPX work best?

What you now know

official No-Trade Zone guide; official LPX overview; official LPX whitepaper

Recall check: When does LPX hold instead of trade?

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