'Stop Limit' buy orders - observations and doubts

Stacks address:
{STZCFP3486BF968TPQ3H6DBRK70YKKSAW39CVBTT} testnet

Description:
{
I introduced two new ‘Stop Limit’ buy orders today
The first order (at 5.35 p.m. CET) with parameters:
Stop Price: 16,650 xUSD
Limit Price: 16,694 xUSD (adjusted by Orderbook to 16,690 xUSD)
Total: 250 xUSD

Order hash

{66b49ca4cf30104116c4f9d72e32d57de16bfc4c0545626706ea21bc0f431639}

The second order (at 5.37 p.m. CET) with parameters:
Stop Price: 16,701 xUSD
Limit Price: 16,693 xUSD (adjusted by Orderbook to 16,690 xUSD)
Total: 250 xUSD

Order hash

{66bee7fb54d9705bd370a3631ed9db39563fab355eb1d2b49c5791171af03cfa}

When placing this second order, a message appeared: ‘Limit Price is higher than the lowest selling order price. Replace’ (screenshoot #1). Eventually I was able to sign and submit it. But with the ‘Stop Limit’ order, it puts a bit of anxiety into what will happen with this order. Maybe it would be better to change this message a bit?

Going back to the orders, the first one appeared in the Order Book after a few minutes. But I was surprised to see that flying with the price of 16,690 marked with a small triangle (which is definitely mine) appeared first on the buy side, and then on the sell side (in screenshot #2). And yet it is/was the buy order.

The second one is still waiting in ‘Open Orders’

In addition, I noticed that in the ‘Order History’ tab there is a distinction between Stop Limit/Buy (Sell) and Limit Buy/Sell, or Market orders.
In ‘Trade History’ the distinction of top Limit/Buy (Sell) type orders we don’t have yet.

In conclusion, I am still trying to understand the principle of this type of Stop Limit/Buy or Sell orders.
And I was surprised that the Stop Limit/Buy type order appeared in the Order Book on both sides of the ledger. First on the buy side. And later on the sell side.

Chan (@fiftyeightandeight) take a look at this, please.
Thank you.
}

Browser: Google Chrome (version): 107.0.5304.107

Screenshots:

Details

Stop_Limit_Order_notify_Limit_price_is_higher

Discord ID:
{mike_bear_1.btc#8434}

Telegram ID:
{@mike_bear_1}

1 Like

Thanks for the observations mike!
I am wondering if perhaps the bot is making it look like the order is appearing on both sides of the ledger.

1 Like

Thanks Werner for writing.
I have to admit that it looked a little strange.
Especially since now the lines with our own order are marked with a small triangle.
And this marking was visible both for the buy transaction first and then for the sell.
Although I was only placing a buy order.

And first I want to get it right. To know in practice how it really works. So that only then I can evaluate and/or distinguish a feature from a bug :slight_smile:

1 Like

I am also observing that the limit price is not taken from the form into the transaction to sign:

Hi @mike_bear_1 @werner.btc , thank you for your feedbacks and we are looking into this.
On what Stop Limit Order is meant to do, just so we are all on the same page,

Stop Limit Order is a Limit Order that is “activated” if the relevant Stop Price meets the condition. Such Stop Price can be either above the current market price or below.

If above at the time of entering such Stop Limit Order, a Limit Order is placed if the market price trades above such Stop Price.

If below, a Limit Order is placed if the market price trades below such Stop Price. Here, “market price” means the price of the token as observed by Redstone oracle.

So for example, if “market price” is currently 15,666 for BTC/USD, a Stop Limit Order with Stop Price at 16,000 will wait until “market price” touches above 16,000 before placing a Limit Order to buy at 15,666 (see Limit Price).

Stop Limit Order with Stop Price higher than 'market price'

On the other hand, a Stop Limit Order with Stop Price at 15,000 (i.e. lower than “market price”) will wait until “market price” touches below 15,000 before placing a Limit Order to buy at 15,666.

Stop Limit Order with Stop Price lower than 'market price'

When would users want to use these orders?

Staying at “market price” at 15,666, a Stop Limit Order with Stop Price at 16,000 is useful for those users who look to accumulate tokens on its way up. Or it could be used to hedge existing short positions (i.e. stop loss).

On the other hand, a Stop Limit Order with Stop Price at 15,000 is useful if you want to buy on the way down. Or it could be the price target of your existing short positions (i.e. profit target).

2 Likes

Thanks @fiftyeightandeight for the detailed explanation.
And what puzzles me is why the placed ‘Stop Price’ order on the buy side, I saw in Orderbook also on the sell side :thinking: