Hello,
As an alternative of "conditional orders": I am going to name them "stop orders".
Since Binance moved stops order to a separate guide (finish of 2025), so that they're not sequenced and queued as a part of the central restrict order guide "CLOB", our stop derived taker slippage has spiraled out of control.
This is what appears to be occurring now:
As soon as triggered, Binance feeds the aggressor elements of the stop orders (market/restrict) into the CLOB. They apply a throttle to this process.
Clients with whitelisted access to the VIP routing and knowledge feeds are capable of detect these throttled cease cascade events and do the next:
-Pull their maker liquidity.
-Front run the cascade with market/restrict orders (these hit the CLOB with out being sure by the identical throttled process because the triggered stop cascade).
There's a cause that this isn't allowed on tradfi exchanges such as the CME.
Binance, please handle this... else I'll reach out to regulators.
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