Order Types

Types of Orders

In the CVEX Platforms, trading is facilitated through a traditional order book system, with two primary types of orders utilised:

  • Market Orders: These orders are executed immediately at the current market price. They are designed for traders who prioritise speed of execution over the control of the execution price.

  • Limit Orders: These orders specify a price limit at which the asset should be bought or sold. A buy limit order can only be executed at the limit price or lower, and a sell limit order can only be executed at the limit price or higher. They provide control over the execution price but do not guarantee execution.

For futures and perpetual markets, traders can opt for long positions, anticipating a rise in asset prices, or short positions, predicting a decline. These positions are counterparts, reflecting opposing market perspectives. Holding both long and short positions simultaneously on the same contract is not possible, as they negate each other.

For options, CVEX facilitates the buying or selling of Call and Put contracts. Strike prices for these contracts, determined by the Platform Owner, offer a range of choices for traders. Placing an options order involves speculation or hedging on the option's Premium Price, which varies with market dynamics and underlying asset movements. Both buyers and sellers in the Call and Put options markets can access margin trading, enabling them to trade without paying the full Premium upfront. This differentiates CVEX from any existing CEX and DEX platforms.

Time-in-Force (TIF) Settings

Traders have the option to select from various Time-in-Force (TIF) settings for their orders, depending on their requirements and strategy:

  • Good 'til Cancel (GTC): This order stays active until it is completely filled or manually cancelled. GTC orders are suitable for traders not in a hurry to execute and waiting for specific price conditions to be met.

  • Immediate or Cancel (IOC): Requiring instant execution, this order type seeks to execute all or a part of the order immediately. The unfilled portion, if any, is instantly cancelled. It's used by traders looking for quick execution while avoiding entering a long-standing order.

  • Fill or Kill (FOK): This stringent order type demands complete and immediate execution. If the order cannot be fully filled right away, it is abandoned. FOK orders are typically used in large-volume trading where partial fills are undesirable.

  • Post Only (PO): This order guarantees the trader’s position as a maker by ensuring the order goes to the order book. It doesn’t execute immediately against existing orders, thus avoiding taker fees. If the order matches existing orders, it's not placed, making it an ideal choice for traders who aim to contribute to market liquidity.

Additionally, CVEX offers a Reduce Only mode, which ensures that an order only reduces a trader’s position, not increasing it. This is particularly useful in risk management, especially for high-leverage positions.

Order Execution and Management

Before execution, each order undergoes a re-evaluation of margin requirements to ensure sufficient collateral for the trader's revised set of positions. Orders failing to meet specific required conditions are immediately rejected. Those that pass this check may be executed instantly, either in full or partially, depending on market conditions and order specifics.

Orders not executed immediately are placed into the order book, where traders can cancel or modify them anytime. The protocol can terminate orders under deterministic conditions, such as contract expiration or default prevention measures. Orders in the book are subject to being filled on the price-time priority, including partial fills, depending on the matching buy or sell orders available.

CVEX also plans to enhance its trading capabilities by implementing a broad range of conditional orders, such as Stop Loss, Take Profit, and Stop Limit orders, further diversifying available trading strategies on the CVEX Platforms.

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