What is the Price Limit Rule?

The Price Limit Rule is a risk control mechanism designed to prevent orders from being executed at abnormal prices during periods of market volatility or low liquidity.

The system uses the Index Price as a reference to determine the maximum and minimum allowable execution prices. If an order price falls outside the permitted price range, it may not be executed immediately.

This mechanism helps protect users from unintended executions and promotes a fair and orderly trading environment.

How is the Price Limit determined?

The Price Limit is calculated based on the Index Price, which is derived from a weighted average of prices from major exchanges for the corresponding trading pair.

Using the Index Price helps reduce the impact of abnormal price fluctuations on a single exchange.

What happens if my order triggers the Price Limit Rule?

If your order price exceeds the permitted price range, the order may enter a waiting state instead of being executed immediately.

During this period:

• The order may remain in the order book for up to 10 minutes.
• The system will continuously attempt to execute the order if the market price returns within the permitted price range.
• If the order cannot be executed within 10 minutes, it will be automatically canceled.

Why does my order appear to be pending?

If your order triggers the Price Limit Rule, it may appear to be pending while it remains in the order book.

During the waiting period, the system will continue attempting to execute the order if market conditions allow.

If the order still cannot be executed within the permitted price range after 10 minutes, it will be canceled automatically.

Why was my order automatically canceled?

Your order may be canceled for one of the following reasons:

• The order could not be executed within the permitted price range after waiting for up to 10 minutes.
• You manually canceled the order.
• The original order was canceled after you submitted another eligible order according to the platform's order handling rules.

Why does BloFin use the Price Limit Rule?

The Price Limit Rule helps reduce the risk of orders being executed at unreasonable prices caused by sudden market volatility or insufficient liquidity.

By limiting execution to a reasonable price range based on the Index Price, the mechanism helps provide a more stable and fair trading environment for all users.

What should I do if my order triggers the Price Limit Rule?

If your order triggers the Price Limit Rule, you can:

• Review the current Index Price.
• Adjust your order price to fall within the permitted price range displayed on the trading interface.
• Submit the order again if necessary.

Frequently Asked Questions

Q1. Why was my order rejected due to the Price Limit Rule?

Your order price exceeded the platform's permitted price range based on the current Index Price. As a result, the order could not be executed immediately.

Q2. Why is my order still waiting instead of being rejected immediately?

Orders that trigger the Price Limit Rule may remain in the order book for up to 10 minutes while the system continues attempting execution if the market price returns within the permitted range.

Q3. Will my order execute automatically if the market price returns within the permitted range?

Yes. If the market price returns within the permitted price range during the waiting period, your order may be executed normally.

Q4. What happens if my order is still outside the permitted price range after 10 minutes?

If the order remains outside the permitted execution range after 10 minutes, it will be canceled automatically by the system.

Q5. How can I avoid triggering the Price Limit Rule?

To reduce the likelihood of triggering the Price Limit Rule:

• Monitor the current Index Price before placing an order.
• Enter an order price within the permitted range shown on the trading interface.
• Consider using the current market price or adjusting your limit price based on market conditions.