As a trusted crypto exchange Coinbase priority is to build features that enhance transparency and help them create the best markets. Starting today, when they launch new assets on the Coinbase Exchange they will be using a price auction to help price discovery and create a healthier market when trading starts.
In price auctions, limit orders are collected over a minimum of 10 minutes for price discovery. While orders are placed on the book, the Pro and Exchange applications along with the API and data feeds will show an indicative price — a price that may be used to match orders when the auction is opened. Using this indicative price as a signal of the eventual open price, users can cancel and resubmit orders while the auction takes place. Upon completion of the auction, orders crossing the final opening price will be matched and the book will move to full trading or limit only.
For orders matched on completion of the auction, both sides are charged taker fees. Orders that remain on the book during full trading are charged standard rates.
Coinbase Exchange will now use price auctions when they launch a new order book or when they restart an order book that was previously paused. These auctions can be canceled without matching any orders.
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