How To Place a Limit Order on Optimum
This post is part of our series on how to trade with Optimum.
Buying a call option, or going “long” on a call is a bullish position to enter into, that speculates that ETH will go up in value.
To place a limit-buy order for a call option, use the “LIMIT BUY ORDER” button on the home page of the Optimum Sandbox. Limit orders have the distinct advantage of being exempt from fees, but are also not guaranteed to be filled.
Now you should see a limit order form, where you will be able to select the specific terms of your order, such as the type of order, the strike price, contract expiration, contract price, and the valid time of the order.
When the details of the order have been entered you can use the “Profit Loss Diagram” to determine how the position can become profitable, with profits shown on the y-axis and Ethereum market price on the x-axis. Based on the diagram shown we can see that the position described will be turn a profit if Ethereum trades above $870.00, and will produce a loss if Ethereum trades below $870.00 at the time of expiration.
To submit this order to the order book we click “Place Order”, now our Ethereum wallet will ask us to sign the order hash and produce the order signature.
Note: We recommend using a dedicated Ethereum account for trading on Optimum. The account may have the same seed phrase as other accounts, but we strongly recommend using a dedicated public/private key pair with Optimum. We also recommend using hardware wallets.
Once we’ve signed the order we will see an order confirmation.
Now we wait. Limit orders are filled by other users that take that order from the order book. To place an order that gets filled immediately you can take an existing order from the order book.
