To enhance market liquidity and improve the overall trading experience, a significant update is scheduled for April 30, 2025. This article explains the upcoming adjustments to the minimum price precision (also known as tick size) for select trading pairs on various platforms.
What Is Minimum Price Precision?
Minimum price precision refers to the smallest permissible increment by which the price of an asset can change. For instance, if a token has a precision of 0.0001, its price can only move in steps of that amount. This parameter is crucial for maintaining orderly markets, as it standardizes price quotes and helps prevent excessively narrow spreads that could lead to market instability.
Adjustments to this precision are common in financial markets. Exchanges may make changes to better reflect the current trading activity and volatility of an asset, ensuring that the market operates efficiently for all participants.
Scheduled Adjustments and Timing
The adjustments are scheduled to occur between 2:00 PM and 6:00 PM (UTC+8) on April 30, 2025. The process will be carried out in two distinct ways, each affecting trading activity differently.
Adjustments Requiring a Trading Halt
For certain pairs where the price precision is being made smaller (e.g., changing from 0.0001 to 0.001), trading will be temporarily paused for exactly two minutes. During this brief window, users will be unable to place new orders, cancel existing ones, add margin, or perform any fund transfers.
The following table details the pairs affected by this type of adjustment and their specific two-minute pause windows.
| Trading Service | Trading Pair | Previous Precision | New Precision | Adjustment Window (UTC+8) |
|---|---|---|---|---|
| Perpetual Swap | APT-USDT | 0.0001 | 0.001 | 3:01:00 PM - 3:02:59 PM |
| Perpetual Swap | LAYER-USDT | 0.00001 | 0.0001 | 3:03:00 PM - 3:04:59 PM |
| Perpetual Swap | OL-USDT | 0.000001 | 0.00001 | 3:05:00 PM - 3:06:59 PM |
| Spot Trading | OL-USD | 0.000001 | 0.00001 | 3:07:00 PM - 3:08:59 PM |
| Spot Trading | OL-USDT | 0.000001 | 0.00001 | 3:09:00 PM - 3:10:59 PM |
Adjustments with No Trading Impact
For pairs where the price precision is being made larger (e.g., changing from 0.001 to 0.0001), the adjustment will occur seamlessly. Trading for these assets will continue uninterrupted, and users will not experience any halt in service.
The only pair affected by this type of adjustment is:
- Spot Trading: BAL-USD (Precision change: 0.001 to 0.0001)
Managing Your Orders and Positions During the Update
The handling of existing orders and positions depends entirely on the direction of the precision change.
Order Handling Rules
1. For precision becoming smaller (e.g., 0.0001 to 0.01):
Limit Orders: Any existing limit order with a price precision greater than the new precision will be automatically canceled. Orders with a precision less than or equal to the new value will remain active.
- Example: If the new precision is 0.01, an order at 130.2442 will be canceled, while an order at 130.2400 will remain.
Strategy Orders: The same logic applies to advanced strategy orders. However, the consequence of a cancellation varies by strategy type:
- Grid and Martingale Strategies (e.g., Spot Grid, Futures Grid): If a linked order is canceled, the entire strategy will be terminated.
- Other Strategies (e.g., TWAP, Iceberg, Stop-Loss): If an order is canceled, the strategy itself will not terminate. It will simply place new orders using the updated precision once trading resumes.
2. For precision becoming larger (e.g., 0.01 to 0.0001):
- All existing orders, whether simple limit orders or part of a complex strategy, will remain completely unaffected.
Note for API Users: These rules apply universally. However, after an adjustment, API users submitting orders with the old precision will have their order prices automatically truncated to fit the new precision. Web and App users will be restricted from using the old precision altogether.
Display Rules for Positions and Order History
1. For precision becoming smaller:
- On Web and App interfaces, the displayed prices for existing positions and historical orders will be adjusted to the new precision. The system follows a principle of "rounding down for previous buy orders and rounding up for previous sell orders."
- API data will continue to show the historical precision for these records.
2. For precision becoming larger:
- All existing positions and historical orders will continue to be displayed using their original precision.
For a deeper dive into managing advanced order types during market events, you can explore more strategies for safeguarding your positions.
Key Considerations for Traders
It is crucial for traders involved with these specific pairs to be aware of the schedule and understand the implications. The two-minute trading halts, while brief, are a critical period where no actions can be taken. Reviewing your open orders and active trading strategies beforehand is highly recommended to avoid unintended cancellations or strategy terminations.
Staying informed about such technical updates is a key part of risk management. We apologize for any inconvenience this necessary maintenance may cause and are committed to providing a superior trading platform.
Frequently Asked Questions
Q1: Why does an exchange adjust the minimum price precision?
A1: Exchanges adjust price precision to optimize market liquidity and trading efficiency. A precision that is too large can stifle price discovery, while one that is too small can create unnecessary market noise. Adjustments help align the trading environment with the asset's current volatility and volume.
Q2: Will my open positions be liquidated during the two-minute trading halt?
A2: No, the temporary trading pause only prevents new actions like placing or canceling orders. It does not trigger forced liquidations based on price movements during that window. Your existing positions remain unchanged but cannot be managed until trading resumes.
Q3: What should I do if my grid trading strategy gets terminated?
A3: If a precision adjustment causes your grid strategy orders to be canceled, the strategy will stop. You will need to manually restart the strategy with new parameters that align with the updated price precision after the trading halt concludes.
Q4: How can I stay updated on future announcements like this?
A4: The best practice is to regularly check the official announcements section of your trading platform. Enabling notification settings for important updates can also ensure you receive timely alerts about scheduled maintenance or parameter changes.
Q5: Is the BAL-USD spot trading pair safe to trade during the adjustment?
A5: Yes. Since the precision for BAL-USD is being made larger, the adjustment will happen in the background without any interruption to trading. You can continue to buy and sell this pair normally throughout the entire maintenance window.
Q6: What happens if I try to place an order at the old precision after the change?
A6: The system will not allow it on Web and App interfaces. For API users, the system will automatically adjust the price to fit the new precision, which might result in an order price slightly different from what you intended.