As a trusted crypto exchange, our priority is to create features that enhance transparency and help us create the best market. From today, we will use one when we launch new assets on the Coinbase Exchange Auction price Help discover value when starting a trade and create a healthy market.
How price auctions work
At our price auction, limit orders are collected within a minimum of 10 minutes for price discovery. Although ordered in the book, Pro and Exchange applications with APIs and data feeds will show an indicative price – a price that matches the order at the time of auction opening. Using this indicator price as a final open price signal, users can cancel and resubmit an order at auction. When the auction is over, orders to exceed the final opening price will be matched and the book will move towards full trading or restriction.
For orders matched with the completion of the auction, a fee is charged from both parties. Orders in the book are charged at the standard rate during the entire trading period. For more information about price auctions and how to get data feeds containing indicative prices, please see our API Docs.
The Coinbase Exchange will now use price auctions when we launch a new order book or when we re-launch an order book that was previously paused. This auction can be canceled without matching any order.
About Coinbase Exchange
Coinbase Exchange helps a variety of clients access one of the deepest pools of liquidity in a controlled crypto spot exchange using a high throughput API and an advanced trading interface.
Although Coinbase wants to use price auctions for every possible listing, there may be some instances where, due to functional or market health reasons, we may use other methods of launching a new book, including limits for starting a new market and using only modes.
Coinbase launches exchange price auction Originally published in the medium on The Coinbase blog, where people continue the conversation by highlighting the story and responding.