Coin base refunding money to those who loss in ethereum breakdown

Coin base refunding money to those who loss in ethereum breakdown

ethereum coin loss

Earlier this week, GDAX, the digital trading currency led by Coinbase, experienced a flash crash in its USD – Ethereum market.

In seconds on-board prices up to ~ $ 320 at prices as low as $ 0.10. While prices recovered quickly, rapid price movements caused many traders to experience margin calls or stop loss orders, which could result in severe losses.

While many thought initially the flash crash was the result of malicious work, GDAX finally confirmed that there was evidence of irregularities or acquisition of public account.

Instead, the flash crash was the result of a person taking several million selling orders in the market price of dollars, which means Friday will change hands to all bidders currently offered at the start of a deal, A total – no matter how much priced the current price Friday.

Complete this Friday in order to instantly slip 30% to $ 224 – which caused the margin 800 Stop Loss Orders and Settlements, which prices as low as $ 0.10.

Usually someone has placed a sell order to dramatically liquidate their position in time in order to minimize the downward pressure on prices. In addition, GDAX inform users who are about to start selling a large withdrawal order will result in this market, namely, the most likely traders is that they do not care (or not) understand that the trade in Market moves.

For all those who do not know the transactions well and trade a stop loss order is a sell order of a stock (or crypto-currency) when the price falls to a certain level. It is basically used as a way to reduce their losses.

In addition, the settlement margin financing is when you get borrowed money to go long and bet an asset rise in prices, and if the currency falls, its location can be closed automatically to the refund of a third party Of it take the price spend a lot of time. These two types of transactions require that assets intended to be sold, which more units to bring down the price.

However yesterday it was announced that the exchange will use the company’s money to refund customers who suffered losses as a result of a margin call or stop loss order executed.