🛜Conditional Orders
Learn about conditional order types Stop-Loss (SL) & Take-Profit (TP)
Trigger Orders on Kwenta
Advanced orders in the context of v3 will no longer accept ETH as keeper deposits. Traders will need to use USDC collateral when placing an advanced order (roughly $2 USDC per order)
A trigger order, also known as a conditional order, is a trading instruction set to execute a buy or sell action automatically when a specified price level, or the trigger price, is reached. These orders are particularly advantageous for active traders, enabling them to establish predetermined market entry and exit points without the necessity of continuous market surveillance.
Consequently, trigger orders are essential for risk management, providing a strategic means to manage trades by setting conditions based on predefined price events in alignment with a trader's objectives.
It's important to note that trigger orders do not guarantee trade execution at a specific price, especially in volatile markets where prices may change rapidly.
Using advanced orders on Kwenta will automatically deposit 0.01 ETH into your margin accounts Keeper. This ETH will be used to pay the blockchain transaction cost when Gelato submits your order.
Types of Trigger Orders
Kwenta supports the following conditional order types:
Type | Where to Place | Direction/Size |
Limit Order | Order Entry - "Limit" | Trader sets the order like a normal trade. |
Take Profit | Order Entry - "limit" | The same size but in the opposite direction of existing position. |
Stop-Loss | Order Entry - "stop" | The same size but the opposite direction of existing position. |
Kwenta cannot guarantee that a trigger order will execute.
Kwenta users are advised to monitor their trigger orders and manage their risk accordingly.
Limit Orders
Limit orders are a great way to avoid buying or selling too early or too late or having to be at your screen all day to trade. Kwenta limit orders will execute when the oracle price reaches at or below a specified price when going long or above or at a specified price when going short.
Limit orders can be used to exit and enter trades.
Limit Order Example
Alice thinks there’s a chance that the price of ETH-USD gets to $800. Due to this possibility, Alice places a limit order to buy ETH-USD at $800. Once the oracle price drops to or below $800, the limit order triggers, and a market order is executed. This means Alice gets to buy ETH-USD for $800 instead of $1,300.
Limit Order as a Take-Profit Example
Limit orders can also be used to close out positions. After entering a long position at $800, Alice thinks the price of ETH-USD will reach $4,000. In anticipation of this Alice opens a limit order to sell or close the trade at $4,000. Once the oracle price goes above the $4,000 price point, the limit order will trigger a market order, locking in profits without having to monitor the market or manually close the trade.
Stop-Loss Orders
Stop-loss orders offer traders the opportunity to protect themselves from large losses. When setting a stop-loss order, you set the price at which you are wanting to exit a position. If the market value of the asset falls below (when long) or above (when short) this price, the order will be executed, and the trader will be able to sell the asset at the set price.
Stop-Market Orders
Stop-market orders (stop loss orders in reverse) initiate a buy or sell action when the asset's price reaches a certain stop price. (think opposite of stop-loss) Upon reaching the stop price, the order becomes a market order, executing at the current best available price. Unlike take profit and stop-loss orders, stop-market orders are not necessarily tied to an existing position, offering flexibility in entering or exiting the market based on price movements.
Withdrawing Unused Keeper deposits
Deposits for advanced order keepers are refundable if they are not used for trade execution. Traders can view their "Execution Keepers" balance at the bottom of the order entry panel.
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