Over the past few weeks, we have published several articles about the new digital currency exchange UMEX. Even though this platform is still in open beta for the time being, their developers are coming up with multiple ways to please both experienced and novice traders alike. One of the latest additions to the platform comes in the form of FAK orders , which will act as an instrument for major digital currency players.
One of the main obstacles to overcome, even for digital currency markets, is liquidity. Over the past few years, we have seen several services – including exchanges – not being able to keep up with customer demand because there is not enough liquidity in the form of BTC. As a result of these liquidity issues, Bitcoin prices can go up or down in a major fashion overnight.
Note from the author : The same trend is noticeable for any alternate digital currency in existence as well.
For those among you who frequent digital currency exchange platforms, you will surely have noticed rather big orders in a currency’s order book. These buy and/or sell orders – also called “walls” – can steer away potential investors from either buying or selling coins, which in turn only causes even more liquidity issues. On the other hand, big orders also causes a price decrease as other people will try to sell for a cheaper price to make sure their order gets filled.
Needless to say, all of the above makes it increasingly hard for “major players” – also known as “whales” – to operate according to their strategy. While some of you may think that is a benefit, and it could be in a way, you have to look at things from their perspective as well. Instead of buying or selling in one major order, these major players now have to break up their order and spread it out across multiple exchanges. Granted, this is a form of decentralized trading in its own right, but it’s far from ideal.
UMEX has come with an ingenious way to please these major players, as the exchange platform has implemented FAK (fill and kill) order types. One of the main advantages of a FAK order is the fact that a trader will not attract unwanted attention, compared to placing a major order on any of the other exchange platforms in existence.
FAK orders on the UMEX exchange platform are executed based on quotations available on the market at the time of creating the order, and the unexecuted part is cancelled immediately. Furthermore, the unexecuted part of the FAK order will not be stored in the order book either, leaving no visible trace of it ever being in existence.
Detailed instructions on FAK orders can be found here : https://www.umex.com/descriptive?alias=operation-manual#creating-a-fak-fill-and-kill-order-in-the-trading-terminal
Source : Press Release via email