The Dexalot Subnet: Order Modifiers & Terms
The Dexalot Subnet is launching very soon and it’s time to introduce our Time in Force (TIF) modifiers and more! Let‘s break down the following order type modifiers; GTC, IOC, FOK, and PO, and discuss the difference between maker and taker order types.
Good-’Till-Cancel — (GTC) is a modifier that an investor may use to ensure their orders to buy or sell an asset remain active until the order is filled or the investor cancels it.
Fill-Or-Kill — A (FOK) is a modifier that an investor may use to ensure their order is directed to be fully executed immediately at the market or at a specified price or canceled if not filled fully.
Immediate-Or-Cancel — An (IOC) order is a modifier that an investor may use to ensure their order to buy or sell an asset executes all or part immediately and then cancels any unfilled portion of the order.
Post-Only — (PO) is an order modifier that will only allow your order to be posted when it can enter and remain in the order book without getting filled immediately. Orders with the PO modifier will be reverted if they can’t enter the book (i.e. if they are tradable by the time the order arrives at the exchange). PO-only mode is used in order books for new listings to populate the order book before matching is enabled.
Maker and Taker Orders:
- A maker order is an order that is not executed immediately when it arrives on the exchange and remains on the order book to be executed in the future by somebody else to interact with it. It provides liquidity to the order book and has less fees compared to a taker order. The only way a maker order gets filled is if a taker order “lifts” it.
- A Taker order is an order that gets executed immediately by matching with a posted order in the order book. Taker orders take liquidity (i.e. match against maker orders) and have higher fees than maker orders.
- It is possible for an order to have both taker and maker characteristics. For example- a sizable limit order can be entered, and it can have an immediate partial fill; which will make the partially filled part a taker order, and a taker fee is assigned. But if there are no other matching orders at that price for the remaining amount, the rest will be posted into the order book. Later, the remaining amount can receive a fill from another market participant. At that point, the order will be a maker order and will have a maker order fee for the remaining amount
About Dexalot:
Dexalot is a revolutionary decentralized exchange aiming at bringing the traditional centralized exchange look and feel to a decentralized on-chain application. Its mission is to bring a truly inclusive and transparent environment where Dexalot users can trade crypto securely and efficiently, with no slippage or custody risk. It is built on Avalanche, the fastest smart contracts platform in the blockchain industry.
