Order Book Market

Basic Concepts of the Order Book

The order book lists all unfilled limit orders placed by users

And is displayed in two sections:

• Buy Orders: Users' limit buy orders, indicating the willingness to buy at a specific price or lower. The highest buy order price represents the maximum price someone is willing to pay in the market.

• Sell Orders: Users' limit sell orders, indicating the willingness to sell at a specific price or higher. The lowest sell order price represents the minimum price someone is willing to accept for selling in the market.

• Spread: The difference between the highest buy order price and the lowest sell order price.

  • A smaller spread (e.g., buy order at $0.55, sell order at $0.57) indicates high market liquidity, with only a $0.02 difference.

  • A larger spread (e.g., buy order at $0.55, sell order at $0.75) indicates low market liquidity.

Market orders are typically executed at the best available price from the counterparty. For example:

• If you place a market buy order and the lowest sell order price is $0.95, you will buy at $0.95.

• If you place a market sell order and the highest buy order price is $0.90, you will sell at $0.90.

Providing Liquidity: When you place a limit order, you become a "market maker" in the market. Since you are willing to trade at a specific price, you add liquidity to the market, contributing to its smooth operation. Market makers receive various incentives, such as lower fees, to encourage high liquidity in the order books across all markets.

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How to Place an Order?

The system supports various order types, such as "market orders" and "limit orders," including "merge" and "split" functionalities.

Market Orders

A market order indicates your desire to buy or sell immediately at the best available price. When you buy/sell, the system matches the best sell/buy orders in the order book to complete the transaction. In rapidly changing markets, especially for large orders, prices may fluctuate before your order is executed. You may encounter significant slippage (the average execution price deviates significantly from the last traded price) or insufficient liquidity (particularly for large orders).

How to Place a Market Order?

1 . On the list page, click on any event to enter its detailed page. You will see the trading panel on the upper right side of the page.

2 . The order type is displayed in the upper right corner of the trading panel. Switch between "Market" and "Limit" using the toggle button.

3 . Select your desired trading direction: "Yes" or "No."

4 . Enter the amount (in USD). The expected profit will display the corresponding share quantity (in USD).

5 . Click "Trade" to complete the market order.

Simple Operation:

If you wish to place a market buy order, locate the "Buy" button on the right side. Select the prediction outcome you believe will occur (Yes/No) and enter the amount you want to invest. After confirming the order details, click "Trade." Once the order is filled, your available funds will be deducted accordingly. After the transaction is completed, the system will notify you that the trade has been successfully executed.

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Limit Orders

A limit order allows you to set a specific price at which the order will be executed only when the market reaches that price.

For example:

Suppose the current price of a "Yes" share in a market is $0.88, but you only want to buy "Yes" if the price drops to $0.80. You can place a limit buy order at $0.80. This order will remain in the system and will only be executed when someone is willing to sell at $0.80 (or lower) and matches your buy order. If the price never drops to $0.80, your order will remain unfilled (you can cancel it at any time).

Why Use Limit Orders?

Limit orders are useful if you believe the current price is unfavorable, expect market fluctuations to reach a better price level, or wish to act as a market maker by providing liquidity at a specific price.

Partial Fills:

Limit orders may be executed gradually. For example, if you want to buy 100 shares at $0.80 but someone only sells you 50 shares at that price, you will first execute 50 shares, and the remaining 50 shares will remain unfilled until more sellers appear.

How to Place a Limit Order?

1 . In the trading panel, click the toggle button to switch to "Limit Order."

2 . Select your desired betting direction: "Yes" or "No."

3 . Enter your desired limit price.

4 . Enter the number of shares to buy. The total trading cost (in USD) will be displayed.

5 . Click "Trade" to complete the limit order.