How Can a Large Trade Temporarily Distort the Last Traded Price? ⎊ Path

How Can a Large Trade Temporarily Distort the Last Traded Price?

A large market order, especially in a thinly traded or illiquid market, can quickly consume all available liquidity at the best prices on one side of the order book. This causes the last executed trade to occur at a significantly worse price, temporarily distorting the Last Traded Price away from the true market value.

How Does the Concept of an Order Book Relate to the Impact of a Whale’s Large Sell Order?

Can a Perpetual Contract Trade Significantly Away from Its Index Price?

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