Hi all! We are happy to announce that Limit orders have been launched on Tsunami Exchange, and we describe their functionality in this article. Enjoy reading!
Limit orders are a powerful tool, the appearance of which allows traders to diversify their trading strategies, entering or exiting positions at certain price levels.
Interesting, you may say, because there were limit orders in the form of Stop Loss (SL) and Take Profit (TP) on Tsunami before. True, but the difference is that when you open a limit order, the protocol fixes it as a separate position, unlike the SL and TP which are fixed for a position which is opened.
Using limit orders, the user can set various market parameters to his liking, including price direction, volume and leverage, being confident that the order will execute when the market reaches the specified price.
So, how does it work?
Now when opening a position, the user has the choice of what type of order (position) should be opened. By default the Market option is selected, when a position is opened "by market", i.e. without waiting for certain conditions.
If the Limit option is selected, the user can select the direction of the future position, the price of the opening position, the leverage used and the trading volume.
Once a limit order has been created, the user can always find it on the Orders tab and monitor its execution status.
Important points
Expiry time
All limit orders have an expiration date. This term refers to the time during which the order must be executed or canceled by the user. Tsunami Exchange offers an expiration time of 60 days or until the trader manually cancels the order. This gives users the flexibility to adjust their trading strategies and adapt to changing market conditions over an extended period of time.
So, whether traders want to hold a position for a set period or take advantage of short-term price movements, the functionality of limit orders on the Tsunami Exchange meets all their needs.
Funds reservation
When creating limit orders, the user should make sure that there are enough funds on their balance to open a position. To save the trader from additional hassle, when creating a limit order, the Tsunami protocol reserves some of the funds required to open a position. This approach ensures that traders will have the necessary capital when the order is executed.
In the event that the trader decides to cancel the created limit order, the full amount reserved when the order was created is returned to the trader.
The reservation feature promotes efficient money management and allows traders to better control their funds.
We are very excited about the long-awaited launch of limit orders on Tsunami Exchange. Their functionality allows traders to strategically plan their trades and enter and exit positions based on desired price benchmarks. We hope that you will appreciate the update and diversify your trading experience!
Thank you for reading,
Your Tsunami Team 🌊