Identify wash trading and volume quality
Evaluate an asset's volume-to-liquidity ratio. If the USD volume substantially exceeds the depth of the order books (a high volume-to-depth ratio), it suggests that the genuine market demand isn't accurately represented by the current trading volume, hinting at possible wash trading.
The liquidity-volume-ration is significantly higher on Bitforex.
How to build the request
With the Market Metrics Asset endpoint, you can use the following parameters to source the specific information you're looking for:
Paramater | Value |
---|---|
asset | ltc |
start_time | 2023-12-28T00:00:00.000 |
end_time | 2024-01-28T00:00:00.000Z |
interval | 1d |
sources | true |
You can find specific asset codes from our instruments explorer or reference data.
Here's an example of an HTTP string request using the values above:
When you receive your response, search for the following fields to find the data you need:
total_off_chain_volume_usd
buy_market_depths - bid_volume_1
sell_market_depths - ask_volume_1
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