Trades

Trades are the primary method of interacting with Standard Standard Exchange, distinguishing it from platforms like Uniswap and other automated market makers (AMMs). Unlike AMMs that primarily rely on market orders with liquidity to price from 0 to infinity, Standard Exchange offers additional functionalities such as limit orders and make orders, providing users with the ability to assign liquidity at their desired prices. Market orders are recommended for those who wants the immediate liquidity, but traders have to be careful of its price impacts and slippage.

Price Impacts

Trades on Standard Exchange require careful consideration of price impacts, especially when executing market orders. Price impact represents the potential change in the execution price due to available market liquidity. Larger trade sizes relative to the liquidity at a specific price point can result in higher price impacts. Traders should be mindful of these potential impacts to make informed decisions and effectively manage their trade expectations. To mitigate price impacts, it is advisable for users to utilize limit orders or make orders when trading assets on Standard Exchange. By setting specific price levels, users can trade without being subject to the potential price impacts associated with market orders, offering greater control over their trades.

Slippage

Slippage refers to the discrepancy between the expected price of a trade and the actual execution price. It can occur due to market fluctuations between the initiation and execution of a trade in market orders. To address this, Standard Exchange traders can set a specific amount of the asset they want to trade at a given price with limit orders, establishing an acceptable margin of change beyond the expected price. If the execution price falls within the specified slippage range, the trade will proceed; otherwise, it will not. By setting a specific price at which the trade should be executed, traders can minimize the risk of matching on slipped prices. Alternatively, traders can also consider using make orders to trigger trades at predetermined prices, further reducing the likelihood of slippage. These approaches provide traders with greater control and help manage potential risks associated with slippage when trading on AMMs.

Safety Checks

To ensure safety and provide transparency, Standard Exchange incorporates various safety checks for trades. One such safety check is the order panel, which displays the amount of liquidity collected at desirable prices. This information helps traders assess the availability of liquidity and make informed decisions when executing their trades. By understanding the liquidity available at specific price levels, traders can determine the feasibility and potential impact of their trades.

These safety checks, including the visibility of liquidity in the order panel, aim to protect traders from unexpected market conditions and ensure a secure trading environment on Standard Exchange.