Trade Failures

What to look out for when a trade fails

Trade failures can be a source of confusion and inconvenience in the dynamic world of cryptocurrency trading. Our goal at X4T is to demystify these occurrences and equip you with the knowledge to understand and resolve them effectively. This comprehensive guide delves into the common reasons behind trade failures and offers practical solutions to help you navigate these challenges.

1. Insufficient Liquidity: A Deeper Look

Understanding the Issue:

Liquidity is the lifeblood of any financial market, including cryptocurrencies. It refers to the availability of market participants ready to buy and sell. A market is considered 'liquid' if large orders can be executed without significant price changes.


Impact on Your Trades:

When liquidity is low, there may not be enough market participants to match your order, leading to trade failures. This is particularly common in the case of less popular or newer tokens.


Strategies for Avoidance:

Market Analysis: Regularly check liquidity indicators on X4T, such as trading volume and order book depth.
Trade Selection: Consider trading more liquid assets, especially if you're placing large orders.

2. Gas Fees and X4T's Unique Approach

Understanding Gas Fees:

In blockchain networks, 'gas' refers to the fee required to successfully conduct a transaction. These fees compensate miners or validators for the computational energy needed to process and validate transactions.


X4T's Solution:

At X4T, we understand the importance of a seamless trading experience, that is why we chose a unique approach to meet your trading needs: To ensure your trades are not hindered by gas fees, we automatically provide the necessary BNB (Binance Smart Chain's native token) to cover these costs for you.


If You Encounter Failures:

Retry Your Trade: If a trade fails due to gas fees, we recommend attempting the trade again, as X4T ensures the necessary gas fees are covered.
Personalized Support: Should the issue persist, please reach out to our customer support. We are dedicated to investigating and resolving individual cases with utmost care.

3. Price Slippage: Understanding and Mitigating Risks

The Nature of Slippage:

Slippage occurs in fast-moving markets and is the difference between the expected price of a trade and the price at which the trade is actually executed. At X4T, we implemented a maximum slippage of 3% to protect our clients from losing their assets to a greater slippage. This way we ensure that you can never lose more than 3% to price slippages.


Effects on Trading:

Significant market volatility can lead to slippage, which might cause trades to execute at less favorable prices or fail if the price change is drastic.


Mitigation Techniques:

Stay Informed: Keep an eye on market trends and news that could trigger volatility.

4. Network Congestion: Causes and Workarounds

Decoding Network Congestion:

At times, blockchain networks experience high traffic, leading to a backlog of transactions.


How It Affects You:

During these peak periods, your trades may take longer to process or fail if the network cannot handle the volume of transactions.


Effective Strategies:

Timing Your Trades: Consider executing trades during less busy hours.
Transaction Fees: Although X4T covers gas fees, understanding how network congestion can affect transaction costs is beneficial.

5. Typographical Errors: Prevention and Checks

The Risk of Input Errors:

A small typo in trade details, like incorrect token addresses or decimal places, can result in failed transactions.


Preventing Errors:

Double-Checking: Always review your trade details thoroughly before submission.
Utilizing Platform Tools: X4T's user interface is designed to minimize the risk of errors, with confirmations and checks in place.

Conclusion

Trade failures, while frustrating, often have straightforward explanations and solutions. By staying informed and utilizing the tools and support provided by X4T, you can navigate these challenges with confidence.

Remember, our dedicated support team is always here to assist you with any issues or questions you may encounter. Please feel free to use our 24/7 live support.

Updated on: 30/07/2024