Kraken Reducing Price Precision
Yesterday, Kraken announced changes that they would be making to trading pairs regarding the number of decimal points allowed when placing orders. The text of the announcement in full can be found below:
“Effective Wednesday August 30 around 6 am UTC (Tuesday August 29 around 11 pm PT) we will be reducing the allowed decimal place precision for placing orders in all trading pairs. Below is a list of all trading pairs showing the new allowed number of decimal places for each pair. For example, 2 decimal places will be allowed for bitcoin-USD (XBT/USD), meaning that you can place an order for $4,350.01 but not $4,350.001. Trying to place an order with more decimal places than allowed will result in an error and the order will not be created. If the “%” option is used to specify order price, the result will be truncated (rounded down) to the maximum allowed number of decimal places.
Reducing the price precision will help reduce extraneous activity in the order books as traders continually jump in front of each other by a very small fraction, resulting in a higher volume of canceled (unfilled) orders. We have received many requests from clients for this reduction and it will help reduce load on the trade engine with more efficient order books.
Thank you for choosing Kraken, the trusted and secure digital assets exchange.
The Kraken Team”
Don’t hesitate to reach out to Kraken if you have any questions or concerns!