Burst Capacity

Burst capacity defines the ability of a trading API to temporarily handle traffic volumes that exceed the standard rate limit for a short duration. Exchanges often implement this to accommodate sudden spikes in market volatility or high-volume news events.

This flexibility prevents legitimate trading activity from being throttled during critical market movements. However, if the burst limit is reached, the system will strictly enforce rate limits to protect infrastructure integrity.

Understanding how a platform calculates burst capacity allows developers to design more resilient trading algorithms. It is a vital component of capacity planning, ensuring that automated systems remain operational during periods of intense market activity.