How does knock out price affect the trading volume of digital currencies?

1 answers

• Dec 15, 2021 · 3 years ago
  At BYDFi, we have observed that the knock out price can have a significant impact on the trading volume of digital currencies. When the knock out price is set at a level that is close to the current market price, it tends to attract more trading activity. This is because traders are more likely to set stop orders at a price that is close to their entry point, in order to limit their potential losses. When the price reaches the knock out level, these stop orders are triggered, resulting in a surge in trading volume. On the other hand, if the knock out price is set too far away from the market price, it may not have much impact on the trading volume, as there will be fewer stop orders executed. Therefore, it is important for traders to carefully consider the placement of their knock out price in order to optimize their trading volume.
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