Binance adjusts tick sizes—small-cap coins could see even nastier wicks
At 14:30 on October 15, Binance will adjust the minimum price increments for a batch of USDT-margined perpetuals, including APR, XPIN, and ROBO. Existing open orders and positions will not be affected, and API parameters will be updated accordingly.
With more granular price levels, market makers can place more layers of orders within the same price range. These contracts are already thinly traded, with liquidity concentrated at just a few price levels. Once the price increments get smaller, traces of order stacking and cancellation become much more visible. In the first few hours after the change takes effect, small-cap coins often put up a seemingly thick layer of bids to lure buyers in, then wick down to liquidate leveraged traders who chased the rally. A short-term spike followed by a pullback is more likely than a one-way rally; only if the price retests and holds above the previous low is there a chance of a second push higher. BTC and ETH order-book depth isn't affected by these parameter changes—the broader market will still determine the direction, while small-cap coins simply amplify the volatility.
If you're holding a long position in a small-cap coin, will you ride out the wick or cut your position in half first? If the broader market pulls back, where will you place your buy order?
$BTC $ETH $SOL
At 14:30 on October 15, Binance will adjust the minimum price increments for a batch of USDT-margined perpetuals, including APR, XPIN, and ROBO. Existing open orders and positions will not be affected, and API parameters will be updated accordingly.
With more granular price levels, market makers can place more layers of orders within the same price range. These contracts are already thinly traded, with liquidity concentrated at just a few price levels. Once the price increments get smaller, traces of order stacking and cancellation become much more visible. In the first few hours after the change takes effect, small-cap coins often put up a seemingly thick layer of bids to lure buyers in, then wick down to liquidate leveraged traders who chased the rally. A short-term spike followed by a pullback is more likely than a one-way rally; only if the price retests and holds above the previous low is there a chance of a second push higher. BTC and ETH order-book depth isn't affected by these parameter changes—the broader market will still determine the direction, while small-cap coins simply amplify the volatility.
If you're holding a long position in a small-cap coin, will you ride out the wick or cut your position in half first? If the broader market pulls back, where will you place your buy order?
$BTC $ETH $SOL