Can GTC expiration impact the price volatility of digital assets?

3 answers

• Randall YangskiFeb 23, 2022 · 4 years ago
  When GTC orders expire, it can potentially impact the price volatility of digital assets. As GTC orders are limit orders that remain active until they are executed or canceled, their expiration can lead to a sudden change in the supply and demand dynamics of a particular asset. If a large number of GTC orders expire simultaneously, it can create a surge in buying or selling pressure, causing the price to experience increased volatility. Traders and investors should be aware of the potential impact of GTC expiration on price movements and adjust their strategies accordingly.
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• BarackJun 16, 2022 · 4 years ago
  GTC expiration can indeed have an impact on the price volatility of digital assets. When GTC orders expire, it means that the orders are no longer in the order book, which can affect the liquidity of the asset. If a significant number of GTC orders expire without being executed, it can lead to a decrease in liquidity and potentially increase the price volatility. Traders should consider the expiration dates of their GTC orders and monitor the market conditions to make informed trading decisions.
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• Mairym CastroJul 23, 2022 · 4 years ago
  Yes, the expiration of GTC orders can influence the price volatility of digital assets. At BYDFi, a digital asset exchange, we have observed instances where the expiration of GTC orders has resulted in short-term price fluctuations. This can be attributed to the sudden change in the order book dynamics and the subsequent impact on supply and demand. Traders should be mindful of GTC expiration dates and adjust their trading strategies accordingly to navigate potential price volatility.
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