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More on order types

This section provides an overview of the various order types available on Mangrove:

Market order​

A market order is an order type used to buy or sell at the current market price.

  • It is executed immediately, prioritizing speed over the specified price.
  • The execution price of a market order may vary due to market fluctuations and order book liquidity.
  • Unlike limit orders, market orders do not have a specific price parameter and are subject to slippage, where the executed price may differ from the expected price.
Example

You place an market order to buy 1 WETH, with a 3% slippage (i.e. you are willing to accept up to 3% of price slippage on your order). Your order could either be executed:

  • In full at 1,800 USDC (desired price).
  • In full at a price between 1,800 USDC and 1,854 USDC (with a slippage of 3%).
  • Partially, depending on the liquidity available on the offer on the order book.
    • Ex: 0.5 WETH at 1,800 USDC + 0.25 WETH at 1,818 USDC (1% slippage) + 0.25 WETH at 1,854 USDC (3% slippage)

Immediate or Cancel (IOC)​

While it may seem similar to a market order, there is a fundamental difference.

  • With an IOC order, you set a specific limit price at which you want the order to be executed.
  • The order will either be immediately filled at that exact price, fully or partially, or canceled entirely. It's about ensuring that your order is executed at your desired price, or not executed at all.
  • The IOC order does not allow for slippage, meaning it won't be filled at a different price than what you specified (unlike a market order).
Example

You place an IOC order to buy 1 WETH at a max price limit of 1,800 USDC. Your order could either be:

  • Fully taken immediately, i.e. you get your 1 WETH at the desired price.
  • Partially taken immediately, i.e. you get 0.8 WETH at the desired price, and the rest is "canceled" (there is no resting order asking for the remainder).
  • Canceled if there is no match on the order book.

Good 'til time (GTT)​

It allows you to set an expiry date for your limit order (ex: active for 3 days, then canceled if not filled). A GTT order that was created, but that has not yet been filled will always show as "Filled" in the UI - it is a normal behavior.

Let us explain:

  • When placing a GTT order, Mangrove will attempt to fill it entirely at the desired price.

  • Instant order = the first execution of the order:

    • If it is a match and the fill is in full, it will be recorded in the UI as is.
    • If it can't be matched just yet, a fill at quantity "0" will be recorded in the UI for the instant order, and a resting order will be created.

  • More on the fill at quantity "0":

    • That allows you to track in the UI that the order was successfully executed, even if no actual quantity was yet bought or sold.
    • It is crucial - without this, there would be no visual trace of what happened to the order you just placed (if not taken).
    • Your resting order is then waiting to be filled. There could potentially be multiple fills for that same order. Typically, there will be one fill for the initial order (0 or any other amount taken), and additional fills up until the resting order is fully taken.

  • This mechanism ensures that even if there are partial fills or subsequent trades on the resting order, each execution is recorded separately.

Example

You place an GTT order to buy 1 WETH at a max price limit of 1,800 USDC, with a time limit of 3 days. Your order could be processed in several ways:

  • Instant full fill: Your order is fully taken, immediately.
    • That means you obtain the target 1 WETH at the desired price.
    • A fill of the transaction will be recorded in the UI.
  • Instant partial fill + Resting Order:
    • If your order is not entirely filled, a fill with the quantity that has been partially executed will be recorded in the UI.
    • Then, a new order will be created to capture the remaining quantity at the requested price. This order will be resting on the order book, waiting to be fully or partially taken, until the expiry date.
    • Each subsequent transaction that matches your resting order will be logged as a new fill until the order is fully executed or expired
  • No instant fill + Resting Order:
    • If there is no matching order available on the order book at the time of placement, a "resting" order is posted in the book, waiting to be taken, either fully or partially.
    • Each transaction will log a new fill until the order is fully taken or expired.
  • Order Cancellation: If there is no match for your order on the order book by the end of the specified time period (3 days in this case), the order will be automatically canceled.

Fill or Kill (FOK)​

The KOF order is an "all or nothing" instant order. It is similar to the IOC order in the sense that it executes immediately, but it does not allow for partial filling.

Example

You place an FOK order to buy 1 WETH at a max price limit of 1,800 USDC. Your order could either be:

  • Fully taken immediately, i.e. you get your 1 WETH at the desired price.
  • Canceled if there is no match on the order book.