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, Bitvavo covers the market risk for up to 5 seconds. Bitvavo's trading mechanism ensures that customers always receive the guaranteed price. To manage this, Bitvavo adds a spread to account for any unforeseen price fluctuations during this period. This approach allows Bitvavo 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.
Where can I enable or disable the Bitvavo price guarantee?
You can enable or disable the Bitvavo price guarantee in the app settings. Follow these steps:
- Tap your profile icon in the top-right corner and tap the trading settings.
- Tap the Price guarantee feature.
- Tap the option to enable or disable at the bottom.
- Slide the lock icon from left to right to enable or disable price guarantee.
The guaranteed price differs from the price estimated when placing a market order 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 order price would have been. This may result in a higher or lower price than a user would have paid by placing a market order and hence a profit or loss for the user.
Frequently Asked Questions
What is the benefit of the Bitvavo price guarantee over a market order?
A successful price guarantee order will always be executed at the price displayed in the preview screen, while the market order price will only be known after execution, based on the offers available on the order book. This makes a price guarantee order much more reliable when you want to be certain that you aren’t paying more than the price that you see.
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 a limit order.
Why is the Bitvavo price guarantee disabled?
In some cases, the Bitvavo price guarantee may be disabled. This happens because the spread in a market is higher than 1%. You can read more about spreads and market protection here. During these market conditions, our customers are protected from trading with market orders. Therefore, trading with the Bitvavo price guarantee is not possible.
To continue trading, you can use (stop) limit orders, where you specify the price you want to pay for your order in advance.
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