Fat Finger Protection Feature
The Fat Finger Protection feature is designed to maintain a fair and orderly trading environment by preventing accidental input errors, commonly known as fat finger mistakes. Although these errors are uncommon, they can cause sudden and significant price swings that may disadvantage other users. This feature helps avoid such situations by limiting the price impact of market orders that deviate too far from current market levels.
How Fat Finger Protection works
Fat Finger Protection applies to all market orders and enforces a maximum impact price to prevent unintended extreme executions.
Maximum impact price rules
Buy orders. Can execute up to ten percent above the best ask or the mark price, whichever is higher.
Sell orders. Can execute up to ten percent below the best bid or the mark price, whichever is lower.
Order execution behavior
If the market order size is within the available liquidity up to the maximum impact price, the order will be fully filled.
If the order size exceeds the available liquidity within the allowed range, the order will only be filled up to the maximum impact price. Any remaining unfilled portion will be canceled.
By controlling extreme order impacts, this feature protects both the trader placing the order and other users from sudden and disruptive price movements.