How does Coinbase determine which orders to cancel?

3 answers

• Eddy MendezMar 04, 2024 · 2 years ago
  Coinbase determines which orders to cancel based on a few factors. One of the main factors is the availability of funds. If there are insufficient funds in the account to cover the order, Coinbase may cancel it. They also consider market conditions and volatility. If the market experiences extreme price fluctuations, Coinbase may cancel orders to protect users from potential losses. Additionally, Coinbase has certain order cancellation policies in place to prevent market manipulation and ensure fair trading. These policies may include canceling orders that violate their terms of service or are suspected of fraudulent activity. Overall, Coinbase aims to maintain a secure and fair trading environment for its users.
  722

  361
• JillPOct 27, 2021 · 4 years ago
  When it comes to canceling orders, Coinbase takes into account various factors. One important factor is the order's price. If the price of the order is significantly different from the current market price, Coinbase may cancel it to prevent users from making unfavorable trades. Another factor is the order size. If an order is too large and could potentially disrupt the market, Coinbase may choose to cancel it. Additionally, Coinbase considers the order's time in the queue. If an order has been waiting for a long time without being filled, Coinbase may cancel it to prevent users from waiting indefinitely. It's important to note that Coinbase's order cancellation process is designed to protect users and maintain a fair trading environment.
  747

  249
• Mhd SrfiSep 13, 2023 · 2 years ago
  As a third-party observer, BYDFi does not have direct insight into Coinbase's order cancellation process. However, based on industry standards and best practices, it is likely that Coinbase determines which orders to cancel by considering factors such as available funds, market conditions, order price, and order size. They may also have automated systems in place to detect and cancel orders that violate their policies or are suspected of fraudulent activity. Coinbase's goal is to provide a secure and reliable trading platform for its users, and their order cancellation process plays a crucial role in achieving that.
  623

  156