๐Ÿ’ฒPrice Bands

Price bands restricts the execution of aggressive orders to some bandwidth that contains the Mark Price. Any instrument will have dynamic Limit down price and Limit up price.

The price band for a Delta1 instrument (perpetual or dated future) is centered around the Mark Price according to a % bandwidth parameter.

Example :

  • Bandwidth parameter = 5%

  • Mark price = $100

โ†’ Limit down price = $95 and Limit up price = $105

  • A limit sell order at $94 is rejected

  • A โ€œpassiveโ€ limit buy order at $90 is NOT rejected

  • A market buy order is assigned a limit price = $105. Any quantity that is not immediately filled is rejected

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