# Futures Generalization

**Making the following changes to (1)(A), we can generalize the mechanism to serve futures markets:**

Replace X by nX (

**n**otional)Similarly to nX introduce nY

Rename to $L_d$ $L_{nX,d}$ and similarly $L_{nY,d}$

Perform (3) for $A_d$

From (1)(A) omit points 4 through 7

Pricing occurs as follows:

a. $P_{X/Y,d} = \frac {A_{nY,d}} {A_{nX,d}}$

b. $P_{Y/Y,d} = \frac {1} {P_{X/Y,d}}$

For any transaction of ‘u’ units of nX at ‘d’, the following occurs:

a. $L_{nX,d} \pm u;$ implying $↻_{z =d_{min}}^d (A_{nX,z} \pm u)$

b. $L_{nY,d} \pm { u \times P_{X/Y,d} };$ implying $↻ _ {z = d_{min}} ^ d [A _ {nY,z} \pm {𝑢 \times P _ {X/Y,d}}]$

c. opposing signs as above are used to update ‘nX’ and ‘nY’

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