Orders

Order Types

Dexodus offers a variety of order types to accommodate different trading strategies and preferences. Each order type is designed to provide traders with the tools they need to manage their positions effectively and efficiently. Here’s an overview of the order types available on Dexodus:

Market orders

• Market orders are executed immediately at the current market price. This order type is ideal for traders who prioritize the speed of execution over the price at which the trade is executed.

Limit orders

• Limit orders allow traders to specify the price at which they are willing to buy or sell an asset. The order will only be executed if the market reaches the trader’s specified price, providing greater control over trade execution.

Stop-loss orders

• Stop-loss orders are designed to limit a trader’s loss of a position. This order type automatically triggers a market order when the asset's price reaches a specified stop price.

Execution and Order Lifecycle

The order execution process on Dexodus leverages advanced techniques to ensure efficient and accurate matching of orders for perpetual trading. Here's a detailed explanation of how the order-matching process works:

Order Matching Process

1. Order Submission:

• Market Orders: When a market order is submitted, it is immediately executed at the current market price obtained from Chainlink data streams.

• Limit Orders: Limit orders are placed with a specific target price and remain pending until the market price meets the specified conditions.

• Stop-Loss Orders: Stop-Loss orders are set with specific trigger conditions and become active once those conditions are met, turning into market or limit orders accordingly.

2. Continuous Monitoring with Chainlink Automation:

• Dexodus uses Chainlink Automation to continuously monitor the state of limit and conditional orders. Every second, the system checks if any pending limit or stop-loss orders need to be executed based on the latest market data.

• Real-Time Price Data: The current market price is fetched from Chainlink data streams, ensuring that the most accurate and up-to-date price information is used for evaluating order conditions.

3. Efficient Execution Using Price Bands:

• To enhance efficiency, Dexodus employs a price band mechanism. Price bands define a range around the current market price within which limit orders are considered for execution.

• Narrowing Down Execution: This approach reduces the scope for checking which orders need execution, speeding up the process by focusing only on orders within the specified price band.

4. Execution Process:

• Triggering Orders: When the market price, as provided by Chainlink data streams, enters the price band of a limit order, or when a stop-loss order’s criteria are met, the order is triggered.

• Trade Execution: The triggered order is executed at the current market price.

5. Slippage Management:

• Slippage Calculation: Dexodus calculates the maximum allowable slippage based on the trader’s configured settings for each order or position.

• Real-Time Checking: Using the price data from Chainlink data streams, the system ensures that the executed price does not exceed the maximum slippage percentage allowed by the user.

• Ensuring Desired Price: This mechanism ensures that trades are executed within the acceptable price range set by the trader, preventing unexpected price deviations.