Possibilities of Limit orders
Last updated
Last updated
The combination of customizable liquidity positions, single-sided asset provisioning, and borrowing enables the creation of limit orders, referred to as Bin Orders.
Take Profit / Sell Limit Order
Buy Limit Order
These orders enable users to provide a single asset as liquidity within specific price bins, with the expectation that the order will be executed when market prices align with the bin.
Benefits:
Opportunity to generate fees from liquidity provisioning while awaiting execution.
Challenges:
Orders may remain unfilled if market prices move out of range and reverse before the liquidity is removed.
Take Profit/Sell Limit Order: If the current price of a USDC/NAD pool is 1,900 USDC/NAD, and you aim to sell NAD for USDC when the price reaches 2,000 USDC/NAD, you can provide NAD at 2,000 USDC/NAD. The order will be filled when the spot price crosses your specified bin.
Buy Limit Order: If the current price of a USDC/NAD pool is 2,000 USDC/NAD, and you expect NAD to rebound after dropping to 1,900 USDC/NAD, you can provide USDC at 1,900 USDC/NAD. The USDC will be swapped for NAD when the spot price drops below 1,900 USDC/NAD.
Buy-Stop Order
Stop-Loss / Sell Stop Order
How It Works:
Users can collateralize assets to borrow at specified bin prices either above (buy-stop order) or below (stop-loss order) the active price bin.
Upon execution, users receive the borrowed asset immediately.
Borrowed positions can be closed by repaying the debt and reclaiming the collateral before the debt expiration.
Benefits:
Eliminates manual monitoring, as orders execute instantly when liquidity is available at the specified price bin.
Challenges:
Execution depends on the availability of liquidity in the chosen bin.
Borrowing fees apply to filled orders.
Buy Stop Order: If the current price of a USDC/NAD pool is 1,900 USDC/NAD, and you anticipate that the price of NAD will rise to 2,000 USDC/NAD, you can collateralize USDC at a bin priced at 2,000 USDC/NAD to borrow NAD. This ensures you commit to buying NAD only after the market confirms your bullish expectation.
Stop-Loss/Sell Stop Order: If the current price of a USDC/NAD pool is 2,000 USDC/NAD, and you expect NAD's price to drop below 1,900 USDC/NAD, you can collateralize NAD at 1,900 USDC/NAD to borrow USDC. This mitigates your downside risk by locking in a sell action at 1,900 USDC/NAD before further price declines.
