mirror of
https://github.com/XRPLF/xrpl-dev-portal.git
synced 2025-11-19 19:25:51 +00:00
35 lines
2.6 KiB
Markdown
35 lines
2.6 KiB
Markdown
---
|
|
html: ticksize.html
|
|
parent: decentralized-exchange.html
|
|
blurb: Issuers can set custom tick sizes for currencies to reduce churn in order books over miniscule differences in exchange rates.
|
|
labels:
|
|
- Decentralized Exchange
|
|
- Tokens
|
|
---
|
|
# Tick Size
|
|
|
|
_(Added by the [TickSize amendment][].)_
|
|
|
|
When an Offer is placed into an order book, its exchange rate is truncated based on the `TickSize` values set by the issuers of the currencies involved in the Offer. When trading XRP and a token, the `TickSize` from the token's issuer applies. When trading two tokens, the Offer uses the smaller `TickSize` value (that is, the one with fewer significant digits). If neither token has a `TickSize` set, the default behavior applies.
|
|
|
|
The `TickSize` value truncates the number of _significant digits_ in the exchange rate of an offer when it gets placed in an order book. Issuers can set `TickSize` to an integer from `3` to `15` using an [AccountSet transaction][]. The exchange rate is represented as significant digits and an exponent; the `TickSize` does not affect the exponent. This allows the XRP Ledger to represent exchange rates between assets that vary greatly in value (for example, a highly inflated currency compared to a rare commodity). The lower the `TickSize` an issuer sets, the larger the increment traders must offer to be considered a higher exchange rate than the existing Offers.
|
|
|
|
The `TickSize` does not affect the part of an Offer that can be executed immediately. (For that reason, OfferCreate transactions with `tfImmediateOrCancel` are unaffected by `TickSize` values.) If the Offer cannot be fully executed, the transaction processing engine calculates the exchange rate and truncates it based on `TickSize`. Then, the engine rounds the remaining amount of the Offer from the "less important" side to match the truncated exchange rate. For a default OfferCreate transaction (a "buy" Offer), the `TakerPays` amount (the amount being bought) gets rounded. If the `tfSell` flag is enabled (a "sell" Offer) the `TakerGets` amount (the amount being sold) gets rounded.
|
|
|
|
When an issuer enables, disables, or changes the `TickSize`, Offers that were placed under the previous setting are unaffected.
|
|
|
|
## See Also
|
|
|
|
- [Dev Blog: Introducing the TickSize Amendment](https://xrpl.org/blog/2017/ticksize-voting.html#ticksize-amendment-overview)
|
|
- **References:**
|
|
- [AccountSet transaction][]
|
|
- [book_offers method][]
|
|
- [OfferCreate transaction][]
|
|
|
|
|
|
|
|
<!--{# common link defs #}-->
|
|
{% include '_snippets/rippled-api-links.md' %}
|
|
{% include '_snippets/tx-type-links.md' %}
|
|
{% include '_snippets/rippled_versions.md' %}
|