What are the potential risks associated with market on close imbalance in the digital currency space?

3 answers

• Dec 15, 2021 · 3 years ago
  One potential risk associated with market on close imbalance in the digital currency space is increased price volatility. When there is an imbalance between buy and sell orders at the market close, it can lead to sudden price movements as the market tries to find equilibrium. This can result in significant price fluctuations and potentially cause losses for traders who are not prepared for such volatility.
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• Dec 15, 2021 · 3 years ago
  Another risk is the possibility of market manipulation. Market on close orders can be used by large traders or institutions to manipulate the closing price of a digital currency. By placing a large buy or sell order at the market close, they can influence the price and potentially profit from it. This can create an unfair trading environment and erode trust in the market.
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• Dec 15, 2021 · 3 years ago
  From BYDFi's perspective, market on close imbalance can pose risks to the stability of the digital currency market. It is important for exchanges to closely monitor and manage market on close orders to prevent excessive price volatility and potential market manipulation. BYDFi has implemented measures to ensure fair and transparent trading, including strict monitoring of large orders and implementing safeguards to prevent market manipulation.
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