As a upgrade of the trading experience, DDEX will support market order in 1.0. Market orders will be filled immediately at best available market prices, with a maximum price slippage at 10%. For market orders, users only need to enter the amount field.
When buying, it's how much you are willing to offer to buy.
When selling, it's how much you are willing to sell.
For all market orders, we need to protect users from executing at insane or unacceptable prices.
An imaginary scenario:
When market buying large amount of WETH, Sarah accidentally bought 1 WETH with 1300 DAI, which is 10x above current WETH market price.
In order to prevent loss at these extreme cases, we set up a 10% max price slippage rate from the current best bid or best ask price, as a market order execution protection mechanism.
Based on the 10% price slippage, we have calculated the worst case scenario for your order: a minimum total and the worst price.
An improved scenario:
You want to market buy DAI with 10 WETH, based on the current available prices, we can tell that you are now expected to receive 1,400 DAI.
To protect you, we set up a worst price for your order:126 DAI/WETH. The minimal total of your market order is then 1,260 DAI. That is, if all 10 WETH is spent, you will at least receive 1,260 DAI.
If, at the time your order is getting filled, only part of your order can be filled at price 126 DAI/WETH or above, we will cancel the rest of your order.
The market order protection mechanism is designed to protect you from financial loss at extreme cases. If you believe the slippage rate can be improved, please don't hesitate to contact us.
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