Decentralized Exchange Limit Order


Mar 4

3 min read

DEX Limit Order

What is a Limit Order?

How do Limit Orders Work on Decentralized Exchanges?

Benefits of Using Limit Orders on Decentralized Exchanges

Price Control: One of the primary benefits of using limit orders on a DEX is that it allows traders to control the price at which they buy or sell an asset. This is particularly useful for traders who want to enter or exit a position at a specific price point.Reduced Slippage: Another advantage of using limit orders is that it helps to reduce slippage, which is the difference between the expected price of a trade and the actual price at which it is executed. Slippage is common in volatile markets and can have a significant impact on the profitability of a trade.No Front-Running: Decentralized exchanges are designed to prevent front-running, which is a common problem on centralized exchanges. Front-running occurs when traders use their knowledge of pending orders to place their own orders ahead of them, resulting in unfair price advantages.Transparency: Limit orders on DEXs are transparent, meaning that anyone can view the order book and see the pending orders. This allows traders to make more informed decisions about their trades and ensures that the market remains fair and competitive.




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