In recent days, the topic of @binance "adjusting candlesticks" has been very hot, so let me talk about the issue of adjusting candlesticks.
1/ A price of 0.01 is a precision issue, not a real transaction; the actual price cannot reach 0.01.
2/ If there is no depth in the order book, even if it really reaches that price, the volume that can be traded is minimal. Binance has a minimum order price protection; everyone should go try it now to see how low of a $ATOM buy order they can place.
3/ Spot ≠ Futures. The price fluctuation of spot directly affects the liquidation of spot leverage, not perpetual contracts. Perpetual is anchored to the spot through funding rates.
You can take a look at the difference in the lowest prices between Binance BTC spot and perpetual contracts when the price spiked on Friday.
4/ If liquidation really occurs because the price reaches 0.01, then opening an account is not as simple as going to zero; instead, it would mean a margin call, and one would probably owe money to Binance.
5/ Fixing candlesticks is a common practice across various exchanges (especially smaller ones) to correct abnormal candlesticks. Why?
It’s not to destroy evidence or anything. Because if not fixed, technical indicators (moving averages, MACD, etc.) would be distorted due to invalid data, misleading all traders.
Additionally, since there are no actual transactions, the significance of retaining them is minimal.
6/ Fixing candlesticks is something all exchanges do. Why is it that Binance is always the one being talked about? Because mentioning Binance generates traffic and interests. Sigh.
