Understanding Perpetual Contract Tick Size Adjustments

In the dynamic world of cryptocurrency trading, exchanges periodically update their systems to enhance performance and user experience. One such update involves adjusting the tick size, or minimum price increment, for perpetual contracts. This guide explains what these adjustments mean for you and how to navigate them effectively.

What is a Tick Size in Perpetual Contracts?

The tick size is the smallest possible price movement a trading instrument can make. For perpetual contracts, which are derivative products with no expiry date, this precision affects how orders are placed, executed, and displayed.

A smaller tick size allows for more granular pricing, which can improve market liquidity and potentially lead to tighter bid-ask spreads. This benefits traders by enabling more precise entries and exits.

Recent Tick Size Adjustments: An Overview

To optimize the trading environment, platforms occasionally revise the tick sizes for various perpetual contract pairs. These changes are designed to reflect current market conditions and trading volumes more accurately.

For instance, a contract previously moving in increments of 0.001 might be adjusted to 0.0001. This finer granularity allows for more precise order placement, which can be crucial for specific trading strategies like scalping.

Detailed List of Adjusted Contracts

The following table provides a clear overview of specific perpetual contract pairs and their respective tick size changes. This information is vital for traders who are actively engaged in these markets.

How Tick Size Adjustments Affect Your Orders

Understanding the operational impact of these changes is crucial for managing your open positions and future orders.

1. Order Display and Presentation

When a tick size adjustment occurs, all existing limit and strategy orders are not canceled. However, the way their prices are displayed on your interface—such as in your open orders, order history, and positions—will be updated to reflect the new precision.

The display follows a specific logic: prices for existing buy orders are rounded down, while prices for existing sell orders are rounded up.

2. Order Execution and Actual Fill Price

Despite the new display precision, the matching engine will still execute your existing orders based on the original tick size. This is important for understanding your true entry and exit points.

For example, if a buy order was placed at 330.244 with an old tick size of 0.001, and the new tick size becomes 0.01, the platform will display the order price as 330.24. However, if the order is filled, the actual execution price remains 330.244. The displayed成交价 (fill price) on web and mobile apps will show 330.24, while API data will still report the original 330.244.

3. Placing New Orders Post-Adjustment

After the adjustment, the rules for placing new orders change:

• API Users: If you attempt to place or modify an order using the old precision, the system will automatically truncate the number according to the new rules (buy orders rounded down, sell orders rounded up). The order will be placed successfully at the new precision. If this new order matches with an old-precision order, the actual fill price will be based on the old precision, and the API will return that original price.
• Web/Mobile Users: The interface will prevent you from using the old tick size altogether. You must use the new precision when placing or modifying any orders.

👉 Explore more strategies for adapting your trading approach after such technical updates.

Best Practices for Traders

To ensure a smooth transition and protect your trading strategy, consider these steps:

• Review Open Orders: Check any existing limit orders for the affected contracts. Understand that their displayed price has changed, but their execution logic has not.
• Update Trading Bots and Algorithms: If you use automated systems via API, ensure they are reconfigured to use the new tick sizes to avoid unintended order placements.
• Stay Informed: Regularly check for official announcements regarding system updates and maintenance from your trading platform.

Frequently Asked Questions

Q: Will my existing orders be canceled when the tick size changes?
A: No, all your existing limit and strategy orders will remain active. Only the way their prices are displayed will be updated to the new precision.

Q: Why does the displayed fill price on my screen differ from the price my API returns?
A: This is due to the display adjustment. The web/mobile interface shows the price rounded to the new tick size, but the API returns the original execution price based on the old tick size used when the order was matched.

Q: Can I still place an order using the old tick size after the adjustment?
A: No, you cannot. Web and mobile users must use the new precision. API attempts to use the old precision will be automatically adjusted by the system.

Q: How does this adjustment benefit me as a trader?
A: A smaller tick size can lead to improved market liquidity and tighter spreads, allowing for more precise order execution and potentially better pricing for your trades.

Q: Should I adjust my trading strategy because of this?
A: It is advisable to review your strategy, especially if you rely on very specific price points for entries and exits. Ensure your orders are placed with the new precision in mind.

Q: Where can I find the official record of these changes?
A: Always refer to the latest official announcements on your trading platform's website or news section for the most accurate and timely information.

Staying informed about these technical parameters is key to successful trading. By understanding tick sizes and how they are adjusted, you can make more informed decisions and maintain control over your trading activities.