Dear HTX Users,

To improve your trading experience in a fluctuating market, HTX will launch the price protection feature for futures trading on web and app clients on December 11, 2024. This feature will be enabled by default for all HTX accounts, automatically applying to existing futures orders. You can disable it anytime as follows:

App: Futures Settings > Price Protection

Web: Trading Preferences > Price Protection

What is price protection?

The price protection feature allows you to protect your take profit and stop loss orders from extreme market movement (such as flash crash) through a threshold. Your TP/SL orders will skip the trigger and be canceled, if the difference between the last price and the mark price of the contract exceeds the set threshold when the TP/SL trigger price is reached.

For Web Clients: You can view the thresholds for various assets on the Contract Details page.

How does price protection work?

Here’s an example to illustrate: Assume you buy BTC at the current price of 85,000 USDT, and you set a take profit order to sell your BTC at 86,000 USDT (mark price).

Normally, when the BTC mark price reaches 86,000 USDT, your TP order triggers.

However, during an extreme market swing, suppose BTC’s last price skyrockets to 90,000 USDT instantaneously, creating a significant gap of 4.6% compared to the mark price (86,000 USDT).

Scenarios:

Scenario 1: Without Price Protection. The take profit or stop loss orders will be executed based on the last price. Therefore, the instant surge could cause your TP order to trigger prematurely, leading to a missed opportunity for additional gains (between 86,000 USDT and 90,000 USDT). Similarly, during rapid declines, it might amplify losses if the SL order triggers too early.

Scenario 2: With Price Protection Enabled. Price Protection adds a 5% threshold to your take profit order. If the price deviates more than 5% from the last price, the system will prevent the TP order from triggering. This ensures that your orders are executed at more stable prices.

Notes:

1. Once price protection is enabled, your take profit and stop loss orders will not be triggered during sharp market conditions if the set threshold is not reached.

2. Once enabled, price fluctuations exceeding the threshold may still trigger your take profit and stop loss orders with a certain probability.

Thank you for your continued support.