v9.2: Enhanced Spread Formula and Competitive Liquidations
A core gTrade value proposition is diverse and comprehensive pair listings. With 200 pairs and counting, gTrade offers a one-stop-shop trading platform. To maintain its premium position, each and every market must offer excellent trading conditions. Until now, this wasn’t fully achieved for two main reasons: spreads & holding fees.
v9.2 addresses these two concerns, aiming to drastically improve trading conditions for a wide range of traders while maintaining gTrade’s position as the premier high-leverage trading platform. This update includes:
- Reduced spreads on crypto, making them more accessible for traders
- Lowered borrowing fees to improve trading for longer-held positions
- Improved OI utilization
Key Updates
Enhanced Spread Mechanism
gTrade introduces a more familiar spread mechanism, applying it on both open and close, while also being more precise with its risk management:
- Halved Open Spreads: Entry conditions are improved for all traders.
- Cumulative Volume Windows: Replaced 4-hour OI windows with 10-minute cumulative trade volume windows, significantly increasing the frequency at which price impact resets, allowing for more trades at lower spreads.
- Long positions
— Open spread: Uses open long & close short volume
— Close spread: Uses close long & open short volume - Short positions
— Open spread: Uses open short & close long volume
— Close spread: Uses close short & open long volume - Introduced Close Spread: Enhances overall market stability and more closely reflects the behavior of order books. Closing spread is a function of the opposite order book depth.
- New Protection Factor: Applied to close spreads for trades open less than 10 minutes and in positive PnL, directly targeting price manipulation. A more precise defense which allows improved spreads for organic trading.
- Guaranteed Order Execution: Orders are still triggered at the requested price, with fulfillment including the closing spread.
- Depth Multipliers: Applied to the denominator of the price impact formula, reducing spreads by 20% to start.
Old spread formula: (oiOfLast4Hrs + (positionSize / 2)) / depth
New spread formula: (tradeVolumeInLast10Mins + (positionSize / 2)) * protectionFactorIfPostivePnlAndOpenLessThan10Minutes / (multiplier * depth)
Competitive Liquidation Structure
v9.2 introduces a more nuanced liquidation threshold formula based on pair and leverage:
- Dynamic model: Replaces the fixed 90% negative PnL threshold with a threshold dependent on pair and leverage.
- Risk-adjusted thresholds: For higher risk pairs and/or higher leverage, the PnL threshold required for liquidation will decrease.
- Precision with protection: Allows for more precise risk management.
gTrade remains offering the most competitive liquidations from medium to high leverage, while this change allows for improved holding conditions.
Impact on Trading Experience
Improved Entry Conditions
All traders benefit from reduced spread on open, providing for reduced costs when opening a trade.
Lower Holding Fees
Due to the more strategic usage of liquidations to strengthen risk management, the protocol can reduce borrowing fees proportionally. This will be a gradual process as the new liquidation model’s impact becomes clearer.
Initial borrowing fee reduction is 25%.
Improved Altcoin Spread
For traders who keep their trades open longer than 10 minutes (where the protection factor would be applied), trades will see a significant reduction in spread (at minimum 20%) on both open & close.
Increased Market OI Utilization
The shift from 4-hour OI windows to 10-minute cumulative volume windows for spread calculations dramatically improves market responsiveness and OI utilization.
This change allows ~24x the amount of trading activity to take place for equivalent spread levels.
Enhanced Market Responsiveness
v9.2 allows for more continuous trading opportunities, even around forex market events:
- The impact and duration of forex news events will be reduced over time
- Spread on close provides built-in protection during high volatility periods
Increased Market Stability
Introducing a closing spread and a protection factor will mitigate price manipulation and enhance market integrity.
Additional UX Updates and Notes
Upcoming Price Impact
You can now see the upcoming price impact based on cumulative volume directly in the trading panel
Close Protection Notice
In the event a trader attempts to close their trade within 10 minutes of having opened it, and the protection factor is applied because the trade has positive PnL, a warning will pop up regardless of if confirmations are enabled.
Updating Max Closing Slippage
Max closing slippage is now set against a trade (default 1%) for all close events (SL/TP/Market). It will have to be set in a separate transaction for a short period following the release. Afterward, it can be set as part of submitting a market close order.
Closing
The v9.2 release marks another significant step in gTrade’s evolution, reaffirming its commitment to continuous improvement and innovation. By reducing spreads and borrowing fees, gTrade aims to enhance trading conditions and further highlight its wide range of markets, becoming more competitive to a broader set of traders while maintaining its strong position with high-leverage ones.
With these improvements, gTrade only further elevates itself as a premier leverage trading platform, offering:
- Industry-leading leverage options
- Over 200 diverse trading pairs across crypto, forex, and commodities
- Median spot prices, no scam wicks
- Guaranteed & exact order execution
- One-click trading
- On-chain execution
As DeFi evolves, gTrade continues to provide a robust, transparent, and fair trading environment and will continue to refine the platform through trader engagement and feedback.
Trade now:
https://gains.trade/?utm_source=medium&utm_campaign=v92&utm_content=launch
