Advanced Swap Orders
Introducing new order types not typically seen in DEXs - Leverage the power of Bracket, Stop-Limit and Stop-Loss orders to increase control and precision over your trading strategy.
Last updated
Introducing new order types not typically seen in DEXs - Leverage the power of Bracket, Stop-Limit and Stop-Loss orders to increase control and precision over your trading strategy.
Last updated
Risk Management: Each order type helps traders define and limit their risk exposure in uncertain markets.
Automation: Going to bed or AFK? We want traders to be focused on strategy rather than execution.
Volatility Protection: Especially useful in crypto and other fast-moving markets, where prices can change rapidly.
Discipline Enforcement: Ensures traders stick to their predefined plans, avoiding impulsive decisions driven by emotions.
A Bracket Order allows you to simultaneously set a predefined Take Profit Price and Stop Price for an asset you already hold while trading against its stablecoin pair. This type of order helps you secure potential profits while mitigating losses, especially in volatile markets.
Example: Suppose you hold 1 WETH and the current market price is $3,500. You are bullish on its near-term price action but want to manage risk. You create a bracket order for 1 WETH with the following parameters.
Take Profit Price: $4,000 - if WETH reaches this price, a limit sell order is triggered to secure profits
Stop Price: $3,200 - If WETH drops to this price, a limit sell order is triggered to limit your losses.
Once the order is filled, the asset is automatically delivered to your wallet.
A Limit Order allows you to specify a price at which you'd like to trade an asset. Limit orders are useful when you have a target price in mind.
Example: Suppose you hold 2 WETH and the current market price is $3,400. You sense bullish price action in the near future and want to sell 1 WETH to ensure profits are taken as price increases.
Limit Price: $4,200 - The price at which you want the order to execute
Your order will be executed when a buyer is matched for 1 WETH at the price of $4,200 WETH/USDC, otherwise it will remain open.
A Stop-Limit Order is a type of order that uses two price points to initiate and execute a trade. The Stop-Loss Price allows you to set a trigger price to start the order and a Limit Price for execution.
Example: Suppose you hold 1 WBTC, and the current market price is $80,000. You want to sell if the price drops to protect against further losses but don’t want to sell too far below the stop price. You create a Stop-Limit order with these parameters:
Stop-Loss Price: $70,000 – If the market price of WBTC drops to this level, your limit order is triggered.
Limit Price: $69,000 – This is the minimum price you're willing to accept for the sale.
When the stop price of $70,000 is reached, a limit order to sell WBTC at $69,000 is created and sent to the order book. If the market price drops, but doesn’t reach the limit price, the order will remain unfilled. Additionally, In a scenario where the market moves extremely quickly and for instance drops to $65,000, there is a chance that your limit order at $69,000 will remain unfilled.
A Stop-Loss Order is a risk management tool that automatically executes a market order when an asset's price reaches a specified stop price. It helps limit potential losses by exiting a position before it drops further.
Example: Suppose you hold 1 WETH and the current market price is $3,500. To protect against losses when the market is trending down, you decide to set a Stop-Loss order with the following parameter:
Stop-Loss Price: $3000 – If the market price of WETH drops to this level, a market sell order is triggered immediately.
While this doesn’t guarantee execution at a specific selling price, it minimizes the risk of holding an asset during a sharp price decline.
Slippage is an important factor to consider when creating a Stop-Loss order. Increasing your slippage tolerance increases the likelihood that your order will be executed especially in markets that are volatile or lack sufficient liquidity. Oku allows users to define their slippage tolerance.
Something to keep in mind with different order types is the difference between an order being triggered vs executed which is critical to understanding how different order types function.
Triggered: An order is triggered when the specified conditions, such as a Stop Price or Take Profit Price, are met. For example:
In a Stop-Limit Order, reaching the Stop Price triggers the creation of a limit order.
In a Bracket Order, hitting the Stop Price or Take Profit Price triggers the respective limit order.
Executed: An order is executed when it is filled, meaning it successfully matches a buyer or seller in the market. Execution depends on market conditions:
Market Orders (e.g., from Stop-Loss Orders) are executed immediately at the best available price after being triggered.
Limit Orders (e.g., from Stop-Limit or Bracket Orders) are only executed if the market price matches or is more favorable than the Take Profit Price. If the price moves beyond the limit range, the order may remain unfilled.
For the advanced order types described above, Oku charges a 25bps fee or 0.25% on trades. Oku also covers the gas costs associated with executing advanced swap orders.
