Limit Orders

Overview

Limit orders are the primary trading mechanism on YC365, allowing users to specify the exact price at which they want to buy or sell YES/NO tokens for prediction market events. This gives traders precise control over their entry and exit points while ensuring transparent and fair price discovery.

What are Limit Orders?

Definition

A limit order is an instruction to buy or sell tokens at a specific price or better. Unlike market orders that execute immediately at the current market price, limit orders will only execute when the market reaches your specified price level.

Key Features

Price Control: Set the exact price you're willing to pay or accept
Time in Force: Orders remain active until filled, cancelled, or expired
No Slippage: Execute at your specified price or better
Queue Priority: Orders filled based on price-time priority

How Limit Orders Work

Order Types

Buy Limit Orders

Purpose: Purchase YES or NO tokens at or below a specified price
Execution: Fills when market price drops to or below your limit price
Example: Place a buy order for YES tokens at 0.65 USDT when current price is 0.70 USDT

Sell Limit Orders

Purpose: Sell YES or NO tokens at or above a specified price
Execution: Fills when market price rises to or above your limit price
Example: Place a sell order for YES tokens at 0.75 USDT when current price is 0.70 USDT

Order Matching

Price-Time Priority

Price Priority: Orders with better prices get filled first
Time Priority: Among orders at the same price, earlier orders get filled first
Partial Fills: Large orders may be filled in multiple smaller transactions

Matching Engine

Real-time Processing: Orders processed as soon as they're received
Fair Execution: No preferential treatment for any user
Transparent Matching: All order book activity is visible

Placing Limit Orders

Step-by-Step Process

1. Select Event and Condition

Browse Events: Navigate to the event you want to trade
Choose Condition: Select the specific condition/outcome
Review Market: Check current prices and order book depth

2. Choose Token Type

YES Tokens: Buy if you believe the outcome will occur
NO Tokens: Buy if you believe the outcome will not occur
Token Pairs: Each condition has corresponding YES/NO token pairs

3. Set Order Parameters

Order Type: Select "Buy" or "Sell"
Token Amount: Specify how many tokens you want to trade
Limit Price: Set your desired price per token
Order Review: Confirm all details before submission

4. Submit Order

Wallet Confirmation: Approve the transaction in your wallet
Asset Lock: Required assets are locked in the smart contract
Order Confirmation: Receive confirmation of order placement

Order Parameters

Price Settings

Minimum Price: 0.01 USDT per token
Maximum Price: 0.99 USDT per token
Price Increments: 0.01 USDT minimum increments
Dynamic Pricing: Prices automatically adjust based on market activity

Quantity Settings

Minimum Order: 1 token minimum order size
Maximum Order: No maximum limit (subject to available liquidity)
Decimal Places: Orders can include decimal token amounts
Total Value: Calculated as Price × Quantity

Time Settings

Good Till Cancelled (GTC): Order remains active until filled or cancelled
Event Expiration: Orders automatically cancelled when event expires
Trading Cutoff: Orders cancelled 1 hour before event resolution

Order Management

Viewing Your Orders

Active Orders

Open Orders: View all unfilled orders
Order Status: Track order execution progress
Partial Fills: Monitor partially filled orders
Order History: Review all past orders

Order Information

Order Details: Price, quantity, token type, timestamp
Fill Status: Filled, partially filled, or open
Remaining Quantity: Amount still waiting to be filled
Average Fill Price: Weighted average price of filled portions

Modifying Orders

Order Cancellation

Cancel Process: Cancel orders through the trading interface
Asset Release: Locked assets returned to your account
Immediate Effect: Cancellation takes effect immediately
No Fees: No fees charged for order cancellation

Order Updates

Price Changes: Cancel and replace with new price
Quantity Changes: Cancel and replace with new quantity
No Direct Modification: Orders cannot be directly modified

Order Execution

Fill Types

Complete Fill: Entire order executed at once
Partial Fill: Order filled in multiple smaller amounts
No Fill: Order remains open if price not reached

Execution Notifications

Fill Notifications: Instant notifications when orders are filled
Email Alerts: Optional email notifications for order activity
Portfolio Updates: Real-time portfolio balance updates
Transaction History: Complete record of all executions

Advanced Order Features

Order Book Integration

Market Depth

Bid/Ask Spread: View the difference between buy and sell prices
Order Book Depth: See all pending orders at different price levels
Liquidity Analysis: Assess market liquidity before placing orders
Price Impact: Estimate potential price impact of large orders

Market Making

Spread Trading: Place both buy and sell orders to capture spread
Liquidity Provision: Provide liquidity to earn from spreads
Market Efficiency: Help maintain efficient price discovery
Risk Management: Manage inventory and exposure carefully

Risk Management

Position Limits

Account Limits: Maximum position size based on account balance
Event Limits: Limits per individual event
Portfolio Limits: Overall portfolio exposure limits
Risk Monitoring: Real-time risk assessment and alerts

Stop-Loss Strategies

Manual Monitoring: Monitor positions and manually place protective orders
Portfolio Hedging: Use opposite positions to hedge risk
Diversification: Spread risk across multiple events and outcomes
Capital Management: Never risk more than you can afford to lose

Order Fees and Costs

Trading Fees

Platform Fee: 0.15% fee on executed trades (1.5/1000)
Fee Calculation: Fees calculated on the total trade value
Fee Deduction: Fees automatically deducted from trade proceeds
Fee Transparency: All fees clearly displayed before order submission

Gas Fees

Network Fees: BSC network gas fees for blockchain transactions
Dynamic Pricing: Gas fees vary based on network congestion
Fee Optimization: Platform optimizes gas usage for efficiency
User Responsibility: Users pay gas fees for their transactions

Cost Examples

Example 1: Buying YES Tokens

Order: Buy 100 YES tokens at 0.65 USDT each
Trade Value: 100 × 0.65 = 65 USDT
Platform Fee: 65 × 0.0015 = 0.0975 USDT
Gas Fee: ~0.01 USDT (varies)
Total Cost: 65 + 0.0975 + 0.01 = 65.1075 USDT

Example 2: Selling NO Tokens

Order: Sell 50 NO tokens at 0.45 USDT each
Trade Value: 50 × 0.45 = 22.5 USDT
Platform Fee: 22.5 × 0.0015 = 0.03375 USDT
Gas Fee: ~0.01 USDT (varies)
Net Proceeds: 22.5 - 0.03375 - 0.01 = 22.45625 USDT

Best Practices

Order Placement Strategy

Market Analysis

Study Order Book: Analyze current buy/sell pressure
Check Market History: Review recent price movements
Assess Liquidity: Ensure sufficient liquidity for your order size
Monitor News: Stay informed about events that may affect prices

Timing Considerations

Market Hours: Consider when markets are most active
Event Timeline: Factor in time until event resolution
Volatility Periods: Adjust strategy during high volatility
News Events: Be aware of scheduled announcements

Risk Management

Position Sizing

Start Small: Begin with smaller position sizes
Gradual Increase: Increase position sizes as you gain experience
Diversification: Don't put all funds in a single event
Capital Preservation: Protect your trading capital

Order Hygiene

Regular Review: Regularly review and update open orders
Stale Orders: Cancel orders that are no longer relevant
Price Validation: Ensure order prices reflect current market conditions
Order Cleanup: Maintain a clean and organized order book

Common Issues and Solutions

Order Execution Issues

Orders Not Filling

Price Too Aggressive: Your limit price may be too far from market
Low Liquidity: Insufficient liquidity at your price level
Market Movement: Market moved away from your order price
Solution: Adjust price closer to current market levels

Partial Fills

Limited Liquidity: Not enough liquidity to fill entire order
Large Order Size: Order too large for current market depth
Solution: Break large orders into smaller chunks

Technical Issues

Transaction Failures

Insufficient Gas: Increase gas limit for complex transactions
Network Congestion: Wait for lower network activity periods
Wallet Issues: Ensure wallet is properly connected and funded
Solution: Check gas settings and wallet connectivity

Order Book Delays

Network Latency: Internet connection delays
Platform Load: High platform usage during peak times
Solution: Refresh page or wait for system to update

Trading Psychology

Emotional Management

Stay Disciplined: Stick to your trading plan
Avoid FOMO: Don't chase prices due to fear of missing out
Manage Greed: Take profits when targets are reached
Control Fear: Don't panic during market volatility

Learning and Improvement

Keep Records: Maintain detailed trading logs
Analyze Performance: Regular review of trading results
Learn from Mistakes: Identify and learn from trading errors
Continuous Education: Stay informed about market developments

Future Enhancements

Advanced Order Types

Stop Orders: Automatic order triggers at specific price levels
Iceberg Orders: Hide large order sizes from public view
Time-based Orders: Orders with specific time-based conditions
Conditional Orders: Orders triggered by specific market conditions

Improved User Experience

Mobile Trading: Enhanced mobile trading interface
Order Templates: Save and reuse common order configurations
Advanced Charts: Integrated charting and technical analysis tools
Social Trading: Follow and copy successful traders

AI Integration

Smart Order Routing: AI-optimized order execution
Predictive Analytics: AI-powered market predictions
Risk Assessment: Automated risk analysis and alerts
Portfolio Optimization: AI-assisted portfolio management

For the latest information on limit orders and trading features, please check our official announcements.