Binance has announced the Spot Price Range Execution Rule (PRER), which is a new mechanism that will immediately cancel taker orders when the trading price is outside the appropriate range according to the dynamic reference mechanism
This new rule will begin to take effect gradually from April 14, 2026, and will directly target the failures of the spot market that occurred during the flash crash event on October 10, 2025
Reasons for the creation of Binance PRER
On October 10, 2025, President Trump's announcement of a 100% tariff on imports from China triggered the largest liquidation in crypto history within a single day
Leveraged positions worth over 19.13 billion USD were forcibly sold within 24 hours, impacting over one million six hundred thousand traders
On Binance, assets like Cosmos (ATOM) were traded close to a temporary zero as margin collateral was liquidated en masse
Some limit orders that were placed years ago were matched with one-sided liquidity at abnormal prices, Binance compensated users a total of 283 million USD affected by the USDe, BNSOL, and WBETH coins that lost their peg
Subsequently, the platform launched the 'Together Initiative' with a limit of 400 million USD to cover losses from forced liquidation, totaling 683 million USD in compensation
The mechanism of PRER
PRER will calculate a dynamic reference price for each trading pair based on the moving average of recent transactions, then set a tradable price range with both upper and lower bounds of that reference price
When there are taker orders to be matched outside the specified range, the unmatched portion of those orders will expire instead of trading at abnormal prices, while maker orders placed in the order book will not be affected, and normal daily trading will have no impact on users
Binance stated that this mechanism will be implemented for each trading pair one at a time, with new pairs enabling PRER once they have a sufficient trading history to reliably use the reference mid-price
API users can check reference prices and the price range through a specific API endpoint in real time
Therefore, traders with outstanding orders should review their strategies before April 14
However, even though PRER adds a layer of protection against over-filling orders, PRER cannot eliminate volatility or the overall risk of leveraged crypto trading