Market Suspensions
Last updated
Last updated
Standard exchange has a temporary suspension of trading activity on the exchange triggered by certain predefined conditions, such as significant price movements or extreme volatility, aimed at preventing panic selling or disorderly market conditions.
This creates a colossal damage in market, including options or future markets which people leverage on digital assets. To prevent this, traditional finances apply trading halt. This practice is often called as 'circuit breaker'. CEXes often do not implement this as they are not regulated, and it creates a huge damage to users.
Standard values the true organic future market where everyone gets a fair leverage. Unlike traditional finance which just halts trading to users, Standard has come up with permissionless, decentralized market suspensions to prevent disorderly market conditions.
Market suspensions in Standard works 24/7 to prevent volatility of a digital asset's price. On every event of market price settlement, limit order prices are limited to be set within ±5% of the market price, and market order prices are limited to set within ±2% of the market price. The spread can be adjusted as market confidence changes.
