A spike is a non-market quote — a sudden price movement that doesn’t reflect real market activity. While it may look like a normal price change, it’s actually caused by a technical error and doesn't represent true market conditions.
What does a Spike look like?
📉A spike appears on the chart as an abrupt rise or fall that seems out of place or exaggerated.
How can you identify a Spike?
Here are the most common signs that you're looking at a spike:
A significant price change within seconds
The price quickly returns to its original level
No related news or market events to justify the movement
Why do Spikes happen?
The main reason behind a spike is a technical error. For example:
A liquidity provider normally sends price data like this:
99.00 → 100.00 → 100.00 → 101.00 → 100.00 → 99.00
But due to an error, the feed is distorted and looks like this:
99.00 → 100.00 → 100.00 → 10,100 → 100.00 → 99.00
📉 In this case, your chart would show a sudden drop to 10,100 — even though the real market never left the 99.00–101.00 range. That’s a spike.
What happens if you trade during a Spike?
Since spike prices are not real market quotes, any trades executed during that moment are automatically cancelled. The spike is also removed from the chart once it's identified, to ensure price accuracy.
✅ In Summary
A spike is a sharp, temporary price move that doesn't reflect real market activity
It’s typically caused by technical errors in price feeds
Any trades placed during a spike are voided
The spike is deleted from the chart to prevent confusion