Orders

Trading efficiently requires a clear understanding of the order types offered on VDEX. The platform provides a range of options tailored to various trading strategies, from high-speed execution to precise entries and automated risk management. This section outlines the available order types and explains how they function in a zero-latency, self-custodial trading environment.

Market Order

A Market Order is the most straightforward order type, designed for traders who prioritize execution speed over price precision. When placed, a Market Order is filled immediately at the best available price in the order book.

How It Works:

• The trader selects the asset and quantity to buy or sell.

• The system matches the order with the best available price in the order book.

• The trade executes instantly, ensuring rapid entry or exit.

Use Cases:

• Ideal for traders seeking immediate market entry or exit without waiting for a specific price.

• Suitable for fast-moving markets where execution speed is more critical than precise pricing.

Key Considerations:

• The final execution price is not guaranteed and depends on market conditions at the time of order matching.

• Slippage may occur in highly volatile markets or when liquidity is limited.

Limit Orders

A Limit Order allows traders to set a specific price at which they want to buy or sell an asset. The order will only execute if the market reaches the chosen price.

How It Works:

• The trader selects the asset, price, and quantity they wish to trade.

• The order is placed in the order book and remains open until it is matched or canceled.

• Execution occurs only if the market reaches the specified price.

Use Cases:

• Ideal for traders who prefer entering or exiting positions at a specific price rather than taking the current market price.

• Useful for scalping, swing trading, or setting strategic price targets.

Key Considerations:

• Execution is not guaranteed; the order may remain unfilled if the price is never reached.

• Helps minimize slippage by securing a pre-determined price.

Stop Orders

A Stop Order is used to trigger a market or limit order once a specified price level is reached. This order type is commonly used for risk management or to automate trade execution.

There are two main types of Stop Orders:

A. Stop Market Order (Stop Loss)

• A market order is triggered once the stop price is reached.

• Ensures an exit at the next available price, even in volatile conditions.

• Commonly used to cut losses on losing trades or lock in profits on winning trades.

B. Stop Limit Order

• A limit order is triggered once the stop price is reached.

• Ensures execution at a specified price or better but may remain unfilled if the market moves past the limit price.

• Useful for traders who want precise control over their exit price while still limiting downside risk.

Use Cases:

• Protecting against downside risk by setting automatic exit points.

• Automating trade entries once price breaks key levels (e.g., breakout confirmation).

Key Considerations:

• Stop Market Orders guarantee execution but may experience slippage in fast-moving markets.

• Stop Limit Orders avoid slippage but may not execute if the price moves rapidly beyond the limit.

Take-Profit

A Take-Profit Order allows traders to automatically close a position once the price reaches a predefined favorable level. This helps secure profits without the need for constant market monitoring.

How It Works:

• A trader sets a predefined price at which the system will automatically close a profitable position.

• The order executes at market price once the target is hit.

Use Case:

• Suitable for traders who want to lock in profits without actively monitoring the market.

• Useful for momentum traders setting structured exit strategies.

Key Considerations:

• Ensures profits are captured before price reversals.

• May execute during volatility, leading to minor slippage.

Summary

VDEX provides a range of order types designed to accommodate different trading strategies. Whether instant execution, precise price targeting, or automated risk management is required, the platform offers the flexibility needed for efficient trading.

By utilizing the right order type, traders can improve execution efficiency, minimize risk, and maximize potential profits, all while benefiting from ZeroGas transactions, sub-millisecond execution, and full self-custody.