Price bands

The exchange rejects an incoming order priced too far from the current mid-point. This reduces erroneous trades and sudden price dislocations.

How price bands work

The exchange calculates a band for each asset around its current mid-point.

• The mid-point is the average of the current best bid and best ask.
• The permitted range for incoming orders is the mid-point ± a percentage, typically 2.5%.
• The percentage can change per asset or with market conditions. The value on this page is illustrative only.

If an asset has no active market (no bids or asks), the exchange uses a reference price it designates to set the band.

Order validation

When you submit an order, the exchange checks its price against the current band and rejects it if it falls outside.

Passive orders (those that rest on the book without executing immediately) are not constrained by the bands.

The band is recalculated whenever the mid-point changes, so it moves with the market.

Reach liquidity outside the band

The bands center on the mid-point rather than the best bid or ask. Your order can be rejected when it tries to interact with a resting order that lies outside the current band.

To reach that liquidity, "walk" your order: move the price toward the resting order in steps until it falls inside the band.

Next steps

• Increment sizes: the increment check that runs alongside the band check.
• Rulebook: the full trading rules.