Trading protections: what they are and when they apply

This article outlines the automatic trading protections on Bitvavo that prevent you from trading at prices out of step with the wider market. It covers spread price protection, reference price protection, and placement price protection.

When you trade on Bitvavo, several automatic checks run in the background to protect you from trading at a price that's out of step with the wider market. This article explains each protection on its own terms: what it is, when it applies, and what happens if it's triggered.

Spread price protection

Limits how far the price you get can drift from the best price available on Bitvavo. Applies to market orders.

Read more information about spread price protection.

Reference price protection

Checks that the price your order would fill at stays within a set range of the reference price, which is calculated from price data across several external exchanges. Applies to market orders, "Price guarantee" orders, and limit orders. 

Read more information about reference price protection.

Placement price protection

Checks that the price you set isn't too far from where the asset is currently trading, mainly to catch input errors before they become a live order. Applies to limit orders, at the moment you place them. 

Read more information about placement price protection.

Why these protections exist

Together, these checks exist to keep trading fair and predictable: they stop orders from filling at prices that are out of step with the rest of the market, and they catch errors before they become costly. The formal definitions of these protections are set out in our trading rules.