KuCoin, a cryptocurrency exchange based in Hong Kong, has been active in<a href="https://www.cryptoknowmics.com/crypto/?p=148939"> introducing</a> new ways to keep up with the community. According to a blog post on March 2, the exchange has<a href="https://kucoin.zendesk.com/hc/en-us/articles/900000263106-IOC-Feature-Price-Protection-Mechanism-for-Spot-Trading"> launched</a> a price protection feature for spot trading.

Users on KuCoin's spot trading are set to explore a new Immediate or Cancel (IOC) feature. The exchange noted that the new feature would enable traders to avoid execution issues, which may possibly result in an unnecessary loss when placing orders.

The rules with the IOC feature notes that, before a limit or market order can be conducted in Spot trading, the new system will first determine if the deviation between the price corresponding to the market depth and that of the best ask/bid price surpass a specific threshold.
<h2>KuCoin's IOC Mode Explained</h2>
If it exceeds the threshold, then a limit order will fail to be placed, and a market order will be executed partially. Meanwhile, the exceeding part of the market order will be cancelled, according to the report.

For instance, when a user places a market order to purchase the exchange's native cryptocurrency, KuCoin Share (KCS) in KCS/BTC. The best ask price is 0.00012BTC at the moment, and the system determines the last price will reach 0.0002BTC if the order is executed. 
<blockquote>"Assume that the deviation is 10% and the threshold price is 0.00015BTC, based on the calculation of (0.0002-0.00012)/0.00012=66.7%&gt;10%, this order can be executed till 0.00015BTC while the remaining quantity will be cancelled," per the report.</blockquote>
Besides, KuCoin noted that the IOC mode might have deviations in detecting market depth. If the quantity exceeds the threshold, the order may not be executed entirely. The threshold, meanwhile, varies for every trading pair obtained from the API symbol port.

Recently, KuCoin<a href="https://www.cryptoknowmics.com/news/perth-mint-gold-token-debuts-on-crypto-exchange-kucoin"> announced</a> support for the public trading of the gold-secured Perth Mint Gold Token, which is also backed by the government of Western Australia.

KuCoin Launches Price Protection System For Spot Trading

KuCoin has launched a price protection feature for spot trading. Users on KuCoin's spot trading are set to explore a new Immediate or Cancel (IOC) feature

Ibiam Wayas is an optimistic crypto news reporter who also enjoys tech writing. He is an introvert who spends much of his time on the internet studying facts that will help him excel in the digital/cryptocurrency space.

KuCoin Launches Price Protection System For Spot Trading

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