A limit order is an order to buy or sell a token at a specific price or better. 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.
- 1.Toggle to “LIMIT” and "SELL" or "BUY"
- 2.Choose which currencies to swap
- 3.Set the price you want to SELL/BUY at
- 4.Click "Place Order"
Once you place your order, it will populate in the limit orders section. Here you can track its progress and cancel if necessary. There are some fees involved. Notably, if there is increased volatility and gas prices are high, the Gelato bots that fill your order will cover the cost and charge a small fee. Also, if you need to cancel an order, you will be charged gas fees.
The ladder strategy is when you buy or sell a token incrementally rather than trading at a single price. It is a simple way to limit losses during market fluctuations by spreading into and out of your positions.
Many CEXs, and some DEXs, allow limit orders on a few established projects, such as PNG or AVAX, but not for new tokens. For many traders on Avalanche, this is a pain point that means staring at charts all day if you want to make smart trades on new and exciting projects.
We don’t find this convenient, so we’ve built a product that you can use for any listing on Pangolin to ensure you get the most out of your trades.
Here’s a simple example of laddering into buy limit order:
Limit orders allow you to swap stablecoins safely. Stables are pegged to $1 but can have slight fluctuations in their prices. For example, there could be $1.008 USDC.e and $1.00 USDC. You can set a limit order for exactly $1.00, and it will fill when USDC.e is back at $1.00.
There’s also the opportunity to arbitrage between different stablecoins using limit orders. Arbitraging between stables means taking advantage of these temporary differences between the coin’s pegged value of $1 and the quoted price.
To do this, you would set a sell limit order on your stable at a higher price than it’s pegged. The result is a quick profit just by clicking a few buttons. Arbitrage is highly competitive and most profitable with larger trades.
*Slippage on limit orders is set to 0.4% and cannot be changed. We cannot guarantee your order will get executed so exercise caution when arbitraging.