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How does MOC expiration affect the liquidity of digital assets?

avatarUpchurch KlosterNov 26, 2021 · 3 years ago3 answers

Can you explain how the expiration of Market on Close (MOC) orders affects the liquidity of digital assets? What impact does it have on the trading volume and price movements of cryptocurrencies?

How does MOC expiration affect the liquidity of digital assets?

3 answers

  • avatarNov 26, 2021 · 3 years ago
    When MOC orders expire, it can have a significant impact on the liquidity of digital assets. As these orders are executed at the closing price of the trading day, their expiration can lead to a sudden decrease in trading volume. This decrease in volume can result in higher price volatility, as there may be fewer buyers and sellers in the market. Traders should be aware of the potential impact of MOC expiration on liquidity and adjust their trading strategies accordingly.
  • avatarNov 26, 2021 · 3 years ago
    The expiration of MOC orders can create opportunities for traders. When these orders expire, it can lead to increased price movements and volatility in the market. Traders who are able to anticipate these price movements can take advantage of the increased liquidity and potentially profit from the market fluctuations. However, it's important to note that trading during periods of high volatility can also be risky, so traders should exercise caution and use appropriate risk management strategies.
  • avatarNov 26, 2021 · 3 years ago
    BYDFi, a leading digital asset exchange, understands the impact of MOC expiration on liquidity. When MOC orders expire, it can result in a temporary decrease in liquidity, as traders who placed these orders may not immediately enter new orders. However, this decrease in liquidity is usually short-lived, as new orders are quickly placed by market participants. BYDFi continuously monitors market conditions and takes proactive measures to ensure optimal liquidity for its users, even during periods of MOC expiration.