Price Guarantee for trading
Price guarantee allows our customers to place a trade with a guaranteed execution price for up to 5 seconds. This feature has several advantages:
- Protecting our customers from slippage, negative impact of volatile markets, and sudden price deviations
- Providing more peace of mind
- Price predictability
- Less risk
How does Bitvavo price guarantee work?
With our price guarantee, a market maker covers the market risk for up to 5 seconds. Bitvavo's trading mechanism ensures that customers always receive the guaranteed price. To manage this, the market maker adds a spread to account for any unforeseen price fluctuations during this period. This approach allows the market maker to assume the market risk for 5 seconds, ensuring that customers benefit from price stability and certainty. As a result, customers will receive the amount they have previewed and confirmed to trade at, providing the best possible user experience.
The guaranteed price differs from the current price shown by adding an additional mark-up to the mid-price. Depending on the market conditions during the 5-second price guarantee window, the guaranteed price may be higher or lower than the market price and hence result in a profit or loss for the user.
When clients are trading via price guarantee at this moment in time, clients are trading against Inveniam B.V. (Inveniam). Inveniam is a group entity of Bitvavo Holding B.V. (Bitvavo Holding). Bitvavo Holding is the parent company of both Inveniam and Bitvavo B.V. (Bitvavo), the operator of the trading platform. Inveniam is operating independently of Bitvavo B.V. as it has its own management and is strictly separated operationally from Bitvavo.
Bitvavo discloses potential conflicts of interest. We kindly refer you to our conflicts of interest register for more information.
Frequently Asked Questions
Why was my order unsuccessful?
Although unlikely, in this case the market for the respective crypto asset is fluctuating so rapidly that the risk of executing the order at a fixed price has become too high for both the customer and Bitvavo. As a result, our exchange's security measures block the execution. If you still wish to continue, you can try placing your order again once the market stabilises.
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