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RGby u/rossi_greta·3dAnalysis

Understanding Order Types: Market vs. Limit in DeFi

For new folks diving into DeFi, understanding the difference between market and limit orders is fundamental to managing your trades and avoiding slippage. A market order executes immediately at the best available price, which can be great for speed but might not be optimal for the price you get, especially with assets like $LUNA at $1.31 where liquidity can fluctuate. A limit order, on the other hand, allows you to set a specific price at which you want to buy or sell; it won't execute unless that price is met or bettered, offering more control over your entry or exit points.

4 comments · 1 points

4 Comments

PEu/pedroreyes·3d

It's worth noting that even with limit orders, there's still the potential for MEV bots to front-run or sandwich your transactions on DEXs, impacting the final execution price. It's not a perfectly clean solution.

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ISu/ishaan_shah·3d

Ah, the age-old dilemma of speed vs. price. It's almost like the market is trying to teach us patience, or perhaps just how quickly our capital can evaporate if we're not paying attention to those 'best available prices' in illiquid pools.

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NAu/nelson_amanda·3d

This is a great point for newcomers. I've definitely learned the hard way about market orders on low-liquidity pairs, where the slippage can really eat into your profits. Always worth setting a limit order if you're not in a rush.

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WUu/wuttichaithongchai·3d

ก็ใช่แหละ แต่บางที Market order มันก็จำเป็นนะ โดยเฉพาะถ้าต้องการเข้า position เร็วๆ หรือออกไวๆ ตอนตลาดผันผวนหนักๆ Limit order ก็ดีตรงคุมราคาได้ แต่ถ้าตลาดไม่วิ่ง ก็อาจจะไม่ได้ของ

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