To get our users started with winning trades on ApeX, here’s our quick introduction to limit orders on ApeX — what it’s, and how it works. Read on!
So, what’s a limit order?
In short, a limit order is an order to buy or sell an underlying asset at a specified price or better. When placing a limit order, you can set the maximum price you’re willing to buy for, or the minimum price you’re willing to sell for. A buy limit order will be executed only at the limit price you’ve set or a lower one, while a sell limit order will be filled only at the limit price you’ve specified or a higher one.
A buy limit order, however, will be filled immediately as a market order if the price you’ve set is higher than the last traded price. The same applies to a sell limit order — if the price you’ve specified is lower than the last traded price.
On ApeX, your limit orders will be submitted by keepers — bots that monitor the prices of AMMs on ApeX — to the “order book” smart contracts for execution once your order conditions are met. The “order book” smart contracts will then verify that your signature is valid, the limit order remains active, the execution price is accurate, and slippage hasn’t been exceeded. Do note that keepers are managed by the ApeX protocol team to guarantee the security of your signature.
You may create a limit order on ApeX using your wallet. You must, however, allow the “order book” smart contracts to spend the coins in your wallet, sign the limit order using your wallet during order placement, and possess a valid signature.
Why and when should I place a limit order?
Because your trade will only be executed if your order qualifications are met, a limit order allows you to buy at a lower price than the last traded price or sell at a higher price. As an AMM-based DEX, the ApeX protocol will leverage eAMMs as the maker and thus ensure that no additional taker fees are incurred for your trades.
Do note that if your limit order conditions fail to be met during execution, the order will be automatically revoked by keepers. This, in fast-moving market conditions, may result in missed trading opportunities.
*From June 8, 2022 to June 17, 2022, the execution of limit orders will not incur gas fees
