After the Max Slippage feature performed well on the Exchange Plus, we are excited to announce that from Wednesday, March 15, 2023, this feature will be implemented on the CEX.IO Prime Liquidity Web Terminal.
Using the Max Slippage setting, the Client can set the maximum allowable percentage of deviation from the price at the time of order confirmation so it can protect the market order from unwanted execution price in cases of unstable or sharp market fluctuations.
Important: Market orders that are created via the Web Terminal with the Max Slippage setting applied will from now on be executed according to the IOC model.
What does it mean?
An Immediate or Cancel order (IOC) is an order that attempts to execute all or part of an order immediately and then cancel any unfilled part of the order.
IOC market order combined with the Max Slippage setting will execute the maximum possible amount within the specified deviation from the initial price while the rest of the volume will not be executed. This means that if there is no price on the market that satisfies the conditions for the execution of the full volume of the order within the selected slippage, then the market order may be partially executed.
Example:
The Client would like to buy 1 BTC by the market price and considers a 1% deviation from the current price to be acceptable.
After submitting and confirming the order on the Prime Liquidity Web Terminal, the price raised above the Max Slippage threshold. During this movement, only part of the order amount (0.8 BTC) was in the 1% range acceptable for the Client and another part of the order amount (0.2 BTC) was beyond the 1% slippage range.
Result: Part of the order amount (0.8 BTC) was executed at the price that is acceptable for the Client in the 1% Slippage range. The other part of the order (0.2 BTC) could not be fulfilled due to the price change over the initially set Max Slippage, so the Client may buy the missing part of the original volume later.