Dear OKX Users,
Price limits serve as a crucial risk control measure to protect investors and prevent market manipulation. To further safeguard participants in spot and margin trading, OKX will implement new order price limits for spot trading in batches starting January 3, 2024. Margin trading will follow the same price limit rules as spot trading.
1. Price Limit Rules
These rules apply to spot and margin trading pairs with available spot indices:
| Phase | Buy Order Max Price Limit | Sell Order Min Price Limit |
|---|---|---|
| First 10 min after listing | No limit | No limit |
| After 10 min | Min[Max(index, index × (1 + y%) + 2-min premium average), index × (1 + z%)] | Max[Min(index, index × (1 – y%) + 2-min premium average), index × (1 – z%)] |
The 2-minute premium average is calculated by:
- Collecting second-level spot trade data and index prices
- Calculating mid-price per second: (best ask + best bid) / 2
- Deriving premium basis as mid-price minus index price
- Averaging 120 data points across 2 minutes
All parameters and indicators may be adjusted according to market conditions without prior notice.
Trading Scenarios
Spot Trading:
- Buy orders exceeding max limit will trigger price adjustment
- Sell orders below min limit will trigger price adjustment
Margin Trading:
- Long positions: Orders above max limit trigger adjustment
- Short positions: Orders below min limit trigger adjustment
- Closing longs: Orders below min limit trigger adjustment
- Closing shorts: Orders above max limit trigger adjustment
Manual orders hitting limits will be automatically adjusted to the limit price.
2. Implementation Timeline
Test Environment:
- Full rollout: December 20, 2023
Live Environment (UTC+8):
- Overall phase: January 3 - January 19, 2024
Batch schedule:
- January 3: LUNC-USDC pair
- January 4-5: ELF-USDT, GRT-BTC, XMR-USDC pairs
- January 8-19: Remaining pairs (adjusted per market conditions)
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FAQ
Q: Why implement price limits?
A: To prevent extreme volatility and protect traders from sudden market manipulations.
Q: Will this affect existing orders?
A: Only new orders placed after each batch rollout will be subject to the limits.
Q: How often are the y/z parameters updated?
A: They're reviewed periodically based on market liquidity and volatility conditions.
Q: Can I still place market orders?
A: Yes, market orders remain unaffected by these limit rules.
Q: Where can I check current limits for my trading pair?
A: All active limits are displayed in the trading interface before order placement.
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OKX remains committed to delivering superior products and exceptional trading experiences.
Last Updated: December 2023