Understanding the distinction between orders and trades is crucial for effective trading on our decentralized exchange.
Orders
- Definition: An order is a user's instruction to buy or sell a specific amount of an asset at a certain price.
- Full Amount: Represents the total quantity the user wants to trade.
- User-initiated: Placed by users and can remain open until fully executed or cancelled.
- Example: Placing an order to buy 100 tokens at $10 each.
Trades
- Definition: A trade is the execution of a transaction when a buy order matches with a sell order.
- Partial Fulfillment: One order can be broken down into multiple trades.
- Execution: Occurs when parts of an order are matched with counter-orders.
- Example: An order to buy 100 tokens at $10 each could be fulfilled by two trades—one for 60 tokens and another for 40 tokens.
Key Differences
Quantity:
- Order: Total amount the user wants to trade.
- Trade: Actual amount exchanged in each transaction.
Process:
- Order: User-initiated and may involve multiple trades.
- Trade: Execution of parts of an order.
In summary, orders represent your trading intentions, while trades are the actual transactions fulfilling those intentions.