What are Limit Orders?
Limit orders are a type of exchange order that allows users to buy or sell an asset at a specific market price.
Users can set:
Which asset they want to sell
How much they want to sell
Which asset they want to buy
What asset they want to buy
At what price point will the exchange trigger
How long until the Limit Order expires
Limit Order use-case:
You're currently holding ETH, and you're looking to sell it for DAI.
However, the current, hypothetical price of 1 ETH = 2,000 DAI isn't good enough for you.
So, you want to set an automation where your ETH will be sold for DAI once the value of ETH reaches a specific amount.
To achieve this, you visit DeFi Saver and go to our Exchange tool located in the sidebar:
You click on the Limit Order tab:
Please note that your ETH must be wrapped into WETH in order to be compatible with Limit Orders.
You'd like to sell 20 of your ETH (WETH) once the price of 1 ETH = 2,500 DAI is reached
You set that your Limit Order expires in 1 day
You click "Create order"
If the price is met within a day, the exchange occurs. If not, it gets canceled.
On DeFi Saver, a limit order is technically an automated strategy performing a swap at a configured exchange rate between two selected tokens.
Any configured limit order will be executed once the minimum amount to be received in the swap matches the rate that you set. This means that your limit order may not actually be executed in cases where the market price only reaches your configured rate or exceeds it by an irrelevant percentage.
In case the wallet lacks sufficient sell token balance when the limit order is triggered, it will not be executed. Additionally, should funds return to the wallet prior to the expiry date and if the exchange rate condition remains met, the limit order will execute unless canceled.
DeFi Saver takes no fee for Limit Orders on the Exchange dashboard.
Related Articles:
Last updated