Advanced Order Types
Here we discuss in depth each of the new order types offered by the new Advanced Swap Order system.
Last updated
Here we discuss in depth each of the new order types offered by the new Advanced Swap Order system.
Last updated
A Limit Order allows you to specify a price at which you'd like to trade an asset, making them useful when you have a target price in mind.
With this functionality, users can set a specific Limit Price to have their transaction executed automatically when market conditions meet the order criteria.
Example: Suppose you hold some WETH and the current market price is $2,000. You anticipate bullish price action in the near future and want to secure profits as the price rises.
Limit Price: $2,600 - The price at which you want the order to execute
Your order will be executed when a buyer is matched for WETH at the price of $2,600 WETH/USDC, otherwise it will remain open.
Unlike the existing limit orders that Oku supports via Uniswap V3 positions, the Advanced Swap Orders implementation does not rely on Uniswap at all. This added flexibility allows swaps to take alternative routes and enables functionality on chains and pairs with limited or no liquidity on Uniswap V3.
A Bracket Order allows you to set a predefined Take Profit Price and Stop Price for an asset you already hold while trading against its stablecoin pair. This order helps you secure potential profits while mitigating losses, especially in volatile markets.
With this functionality, users can hold a volatile asset without knowing the markets direction, while still having an order in place to either take quick profits or minimize losses - all within a single transaction.
Example: Suppose you hold some WETH, and the current market price is $2000. You are bullish on its near-term price action but want to manage risk. You create a bracket order for your WETH with the following parameters.
Take Profit Price: $2,600 - if WETH reaches this price, a limit sell order is triggered to secure profits
Stop Price: $1,500 - 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.
Bracket orders act as both a Limit Order and a Stop-Loss order simultaneously, combining a Take Profit Price to capture gains, and a Stop-Loss price to protect against losses.
Each trigger price has its own slippage parameters, allowing for customized settings. For example, a more aggressive slippage can be set on the stop price to minimize further losses in a rapidly falling market.
A Stop-Limit Order uses two price points to initiate and execute a trade: A Stop Price to trigger the order and a Limit Price to define the execution price. Unlike a regular limit order—which is active immediately and executes at the limit price or better—a stop-limit order only becomes a limit order once the stop price is reached. This approach provides a way to enter or exit a position based on market momentum while protecting against unfavorable price movements.
Example: Suppose you hold some WETH, and the current market price is $2,000. 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 Price: $1,600 – If the market price of WETH drops to this level, your limit order is triggered.
Limit Price: $1,500 – This is the minimum price you're willing to accept for the sale.
When the stop price is reached, a limit order to sell 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.
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.
With this functionality, users can hold a volatile asset, and in the event it drops in value rapidly, they can sell it off in an automated way, thus minimizing their effective risk.
Example: Suppose you hold 1 WETH and the current market price is $2000. 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: $1,500– 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.
While stop-limit orders offer unique functionality, they come with trade-offs compared to pure limit or bracket orders. A simple limit order provides immediate execution at a desired price or better without waiting for a stop price to be triggered. A bracket order, on the other hand, offers simultaneous profit-taking and loss-limiting capabilities.
In contrast, a stop-limit order introduces a two-stage process. The initial stop price adds a conditional delay, meaning the order won't execute unless the market moves to that stop price. This can be beneficial for trend-following strategies but potentially disadvantageous if the desired limit price is reached before the stop is triggered.
