Hello,
As an alternative of "conditional orders": I'm going to name them "stop orders".
Since Binance moved stops order to a separate e-book (finish of 2025), so that they're not sequenced and queued as a part of the central restrict order guide "CLOB", our stop derived taker slippage has spiraled out of control.
That is what appears to be occurring now:
Once triggered, Binance feeds the aggressor elements of the cease orders (market/limit) into the CLOB. They apply a throttle to this process.
Clients with whitelisted access to the VIP routing and knowledge feeds are capable of detect these throttled stop cascade occasions and do the following:
-Pull their maker liquidity.
-Front run the cascade with market/restrict orders (these hit the CLOB with out being sure by the identical throttled procedure as the triggered stop cascade).
There's a cause that this isn't allowed on tradfi exchanges such because the CME.
Binance, please tackle this... else I'll reach out to regulators.
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