What does this mean??
Hey guys! I always like to take a peek at Binance before I go about my day, and this morning I see this! There's a 4btc buy order and a 3.4btc sell order very close to each other. This feels quite strange, as the price gap is only around 0.25%, why doesn't one just fill the other guy's order?
I have seen this happen a few times before on a few different coins, and it's always struck me as quite strange!
What the fuck just happened
I looked over again just then, in the time it took me to type the above, the buy order is now gone!
I'm very confused as to what is happening, is this normal? Or is this some big manipulation conspiracy shit going on in the background??
To any experienced traders out there, I'd love to have your take on this :)
Hi mate, it's not a single person buying such large quantities, firstly. Its cumulative. Lots of algorithmic trades will use similar strategies abs hence have orders at similar levels.
Second most importantly, these walls are fake and are there to push average traders to buy slightly higher so that the algo trader can sell at a better price. Most high frequency guys play a volume game. They want to make small trades with small profits but do a million such trades. So they will create false order books. Never think of a wall as support. Its usually a false order. And its not manipulation. Well, you can call it manipulation if you want to.
hi @karamyog, @cryptoeater
why not? it's more often than not just one single buyer/seller who is playing with the market (which happens a lot whenever volume is very low).
I like your second explanation :)
Hey, thats kind of what i meant. Its not always the case that these large orders are one account. It can be, it cant be. So i agree with what you. It can definitely be one single guy. However, since i think the walls are fake, the buyers are fake and therefore smaller multiple accounts end up trading around those prices. It can definitely be true that one account actually hits 100k order straight to give a false sense of hope or for any other reason.
Hi @karamyog
Im very sorry for such a delay with my replies but currently Ive been overwhelmed with amount of work that has been related to my latest contest. I never expected to receive such an amazing support.
Thank you for sharing your knowledge.
Enjoy your weekend :)
Yours
Piotr
Back when I had a lot of BTC, I used to TRY do stuff like that manually haha
However, I never let my orders get filled, but these massive walls do get chipped at, and eventually filled. The big buy wall broke in like 5 seconds! I'm assuming they were from arbitrage bots as there were some big sell orders on other exchanges too.
It's just weird seeing two massive walls with a less than 0.25% spread!
Manually is too risky and quite impossible these days. Also these walls going away doesnt mean trade actually happened. Orders do get removed or changed to change price and quantity. Dont think that all the high walls are going away because of a trade happening. The trading book is anonymous but if you had an identity based trading book, you would have seen the change.
I would like to know about trading to be able to explain you, but I suppose they are of those curiosities that this world has. I will be reading the answers.
It seems that you have detected an unusual process, I would like to know what is the explanation of this phenomenon
I am starting in this cryptocurrency, in spite of my years I do not know much about this, but as I want to learn, I will see the different answers you receive soon
hi @cryptoeater
I've also seen this happen a few times before. Thx for informative explanation mate.
Big whales sometimes are creating "walls" to make impression that there is demand. People get pumped and excited then all of sudden wall dissapear and many not experienced traders end up on losing end.
cheers
Piotr