Someone explaim me this

Other Projects MarginX
1

how can i had 115$ with pnl -10
close long with pnl on positive
and have less usdt now

Opera Instantánea_2022-12-07_223413_trade.marginx.io
Opera Instantánea_2022-12-07_223413_trade.marginx.io1240×883 170 KB

Opera Instantánea_2022-12-10_082304_trade.marginx.io
Opera Instantánea_2022-12-10_082304_trade.marginx.io1240×883 170 KB

https://starscan.io/dex/tx/0x468608201749A0C987ADA3A2C01B62E5A18527F7BFE96EDC758B4B45DCD37B2E?chainId=MarginX-FX

2

When doing a market order, you have to check if there is enough liquidity on the orderbook side to cover your total amount.

If you limit your order, it will only execute at your set price.
If you market your order, it will just clear the liquidity on the orderbook without caring about actual liquidity.

Your entry: 0.1786
Your exit: 0.1798

  • On paper, it is positive.

However, you used market order and sold without considering the actual liquidity on the orderbook side, which you did not account for.

Liquidity is important, and you should always double check to see if there is enough liquidity on the orderbook to fill your full order.

  • Use Limit order in the future so that it will only execute exactly as what you set

Here’s the comparison between limit vs market:

Market Order

  • Pros
    – Execute your order as quickly as possible as long as there is enough buyers/sellers
  • Cons
    – The average price will fluctuate according to the liquidity on the orderbook

Limit Order

  • Pros
    – It will only execute at your order price strictly
  • Cons
    – Does not fill orders as quickly. It executes only when the price hits your order price.

Limit orders are designed to give you control over your buys and sells, according to your set price.

Market orders are designed to quickly fill your order, but they come with the risk of an unexpected average price that is fully dependent on liquidity.

3 Likes
3

i understand but i did candle with market close order is over (115 with pnl-10)

4

When performing a market close or buy, orderbook liquidity must be taken into consideration.

image
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You market closed but did not check the orderbook availability at that time.

  • There are advantages and disadvantages for market orders.

Use Limit order in the future for guaranteed set price execution.

3 Likes
5

yes i undrstand even so candle and liquity is above

6

next time Limit order only

7

You may have misunderstood what is orderbook liquidity.

On paper, it is positive in PnL but because the liquidity to clear 2,423 FX is not enough at the mark price, you cleared and sold to buyers below the mark price, which caused your average price to be below your exit price of 0.1798 which resulted in a loss due to lack of liquidity.

2 Likes
8

ok, thanks. Next times with Limit close orders always

thanks for the info

1 Like
9

Example here:

Let’s say you wanted to close 1000 FX.

image
image573Ă—272 22.6 KB

→ The price at 0.1782 only has 22.4 FX available.

If you market closed, it will not only clear the 22.4 FX but the rest of the liquidity BELOW 0.1782 which will result in loss.

  • That’s the disadvantage of Market Order.

You may get an unexpected average price if you do not take the liquidity on the orderbook into account.

  • Use Limit Order for guaranteed set price execution.
4 Likes
10

yes, little liquity when i closed