> For the complete documentation index, see [llms.txt](https://nitro-finance.gitbook.io/ftl/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://nitro-finance.gitbook.io/ftl/strategic-interactions/possibilities-of-limit-orders.md).

# Possibilities of Limit orders

The combination of customizable liquidity positions, single-sided asset provisioning, and borrowing enables the creation of **limit orders**, referred to as **Bin Orders**.

## Bin Order in the Form of Liquidity Provisioning

* **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.

### **Examples:**

* **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.

<figure><img src="/files/quV0mKgP0p0UfBevTV36" alt="" width="488"><figcaption></figcaption></figure>

* **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**.

<figure><img src="/files/A5762qnWnNdkx1Ks9174" alt="" width="488"><figcaption></figcaption></figure>

## Bin Order in the Form of Borrowing

* **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.

### **Examples:**

* **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.

<figure><img src="/files/y34qoOeYDQDrqe5OLk7k" alt="" width="488"><figcaption></figcaption></figure>

* **Stop-Loss/Sell Stop Orde**r: 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.&#x20;

<figure><img src="/files/UNI8q6YlzxHhkqfvJIEX" alt="" width="488"><figcaption></figcaption></figure>
