The South Korean cryptocurrency market is facing challenges due to the implementation of large tick sizes on major exchanges like UPbit and Bithumb. According to the authors of the publication, it is concerning that this practice is impacting the efficiency of order books and the speed of trades, particularly affecting retail traders who are often more sensitive to trading costs.
Impact of Large Tick Sizes on Market Trading
Large tick sizes, while intended to enhance market stability, have resulted in wider spreads between buy and sell orders. This phenomenon increases the overall cost of executing trades, making it more expensive for traders to enter and exit positions. Retail traders, who typically operate with smaller capital, find these conditions particularly burdensome as they navigate a market that is becoming increasingly difficult to trade efficiently.
Call for Reassessment of Tick Size Policies
As the debate continues over the balance between market stability and trading efficiency, stakeholders are calling for a reassessment of tick size policies. The current structure may need to be adjusted to better accommodate the needs of all market participants, especially those who are less equipped to absorb the higher costs associated with larger tick sizes.
The recent challenges in the South Korean cryptocurrency market due to large tick sizes contrast sharply with the success of the 2025 Deribit x SignalPlus Trading Competition, which achieved record trading volumes. For more details, see read more.
