Order Types

Perpetual Trading

Perpetual trading involves a type of trading contract frequently used in cryptocurrency markets. Unlike traditional futures contracts, perpetual contracts are derivatives that do not have a set expiration date. They enable traders to speculate on the price movements of various assets, such as cryptocurrencies, indices, and commodities, without being bound to a specific expiry.

Currently, Mount Exchange supports two types of orders:

• Market Order: An order executed immediately at the current market price.

• Limit Order: An order that is executed at the limit price or better.

Market Order

A market order is an instruction to buy or sell an asset on Mount Exchange at the current market price. Unlike a limit order, which specifies a desired price, a market order is executed as quickly as possible at the best available price provided by the Order Matching Router.

Buy/Sell Limit Order

A buy/sell limit order allows traders to set a specific price at which they want to buy or sell an asset.

• For a buy limit order, the trader sets a price below the current market price.

• For a sell limit order, the trader sets a price above the current market price.

The order is only executed if the market price falls to or below the specified limit price for a buy order, or rises to or above the limit price for a sell order. This allows traders to potentially buy at a lower price or sell at a higher price than the current market rate.

Due to the dynamic nature of market conditions and the strategies of the Market Maker Pools, the price of a matching order may vary significantly before execution. In some cases, the order may fail, especially when the buy/sell ratio is close to or reaches 100%.

A limit order is ideal for traders who are targeting a specific price and can afford to wait, those operating in volatile markets to maximize profits or minimize losses, and for large orders where avoiding unfavorable market conditions is crucial.

Limit Order

A limit order allows traders on Mount Exchange to set a specific price at which they wish to buy or sell an asset. This order type lets traders define the highest price they are willing to pay to buy or the lowest price they are willing to accept to sell. A limit order will only be executed if the market price reaches or surpasses the specified limit price, ensuring that trades are made only when the market meets the trader's price conditions.

Buy/Sell Limit Order

A buy or sell limit order is utilized when a trader wants to acquire or offload a particular asset:

• For a buy limit order, the trader sets the limit price below the current market price.

• For a sell limit order, the trader sets the limit price above the current market price.

This setup ensures that the order will be executed only if the market price drops to or below the limit price for a buy order or rises to or above the limit price for a sell order, allowing traders to potentially buy at a lower price or sell at a higher price.

Given the dynamic nature of market conditions and the strategies employed by Market Maker Pools, the matching order's price may vary significantly before execution. In some scenarios, the order might not execute at all, particularly when the buy/sell ratio is very high or reaches 100%.

Limit orders are particularly effective for traders who are targeting specific price levels and can wait for market conditions to align, those operating in volatile markets to optimize profits or minimize losses, and for executing large orders while avoiding unfavorable market conditions.