Trading

All posts in Based are tradable. The current sentiment regarding any particular post is indicated by the “Based-o-Meter” – a real-time sentiment indicator.

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Based-o-Meter

The Based-o-Meter (“BoM”) is the lifeblood of Based. The current BoM of a post is indicated by the number inside the glass-bubble at the bottom of the screen. BoM values range from -100 to +100. All posts start at 0. A higher value means people think the post is Based, a lower value that people think it is Cringe. For example, a value of +69 would be very Based, whereas a value of -20 would be somewhat Cringe. In some screens, BoM is indicated by this icon:

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Cringe or Based?

Your mission, should you choose to accept it, is to determine how Cringe or Based a post is. There’s no right or wrong, there’s only what everyone else thinks. To be succesful, you need to understand everyone else’s sentiment. If a post is trading at -20 but you think it deserves to be at +35, you should open a Based position. If you think the same post should actually be even more cringe, say -80, you should open a Cringe position.

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Opening a Position

To open a position, simply click the BoM and choose whether you’d like to side with Cringe or Based. Select the amount and click “Confirm trade”.

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Viewing Open Positions

When browsing the feed or searching for posts, the BoM turns blue if you have a position in the particular post. You can also find your open positions by navigating to your profile (rightmost tab) and selecting “Open”.

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Timing, Entry, and Exit

Timing, entry, and exit are everything. Positions do not close automatically. You should always try to have a view of where a post should be trading. This helps you close positions at the correct level and cut your losses early if you were wrong about what others think of a post. Timing is important because the initial reaction to a post might be opposite of where it should actually be. Culture changes quickly and so do people’s reactions. What might have been based just a day ago might be quite cringe tomorrow. Understanding the reactions, counter-reactions, and cyclicality of culture is core to good timing. You don’t need to agree, you just need to be right. Entry is one of the most important decisions you can make. Getting into a clearly Cringe post while it is in its early innings near 0 is much better than getting into the same post later. Your profits (and losses) are determined by the amount the BoM value changes while you have a position in it. Exit is also important. If a post starts drifting to the opposite direction of what you thought, you might be in for a nasty surprise. Re-evaluate, and cut your losses early if you do not have the conviction. Profit is a function of the entry and exit levels into a position. Here are a few numerical examples of the profits and losses you might be looking at, depending on your entry, exit, and direction for a $10 position:

Entry	Exit	Direction	Profit/Loss
-70	-30	Based	+$151
-50	-30	Cringe	-$7.4
-5	+5	Based	+$1.6
-5	+25	Cringe	-$3.3
+20	+30	Based	+$12.5

Illustrative profit & loss estimates on a $10 position for various entry and exit values. The further out from zero the BoM swings, the more profit (and loss) there is to be made. If you have huge balls, you trade huge swings.