Dynamic Price Band

APEX implements the Dynamic Price Band mechanism that validates the prices of all orders.

1. Range of Dynamic Price Band for each product

Please refer to the table below:

Contract Range
Bitcoin Monthly Futures +/- 10%
Bitcoin Perpetual Futures +/- 10%


2. What is Dynamic Price Band?

Dynamic Price Band is a mechanism which protects the integrity of the market by subjecting price-based orders to price validation. This prevents erroneous and/or unrealistic orders and in turn, mitigating the risk of sharp price movements in the market.


3. How does the Dynamic Price Band mechanism work?

The Dynamic Price Band mechanism works by creating upper and lower price bands around a dynamic reference price. Bids higher than the upper band and offers lower than the lower band will be rejected by the trading platform in its entirety. However, it does not affect market depth as traders are not prevented from entering bids (offers) lower (higher) than the prevailing market prices.


4. How is the reference price determined?

Please refer to the examples for more details.

Dynamic Price Band Appendix.pdf