Place Limit Orders

Basic

A trading bot can create limit orders by interacting with DEX exchange contracts. An exchange contract usually provides a createOrder function that allows users to place limit orders.

Advantages of Limit Orders

1. Price Control

• Limit orders allow traders to specify a desired price to buy or sell an asset, providing greater control over the execution price.

2. Reducing Slippage

• Limit orders help reduce slippage, which occurs when an order is executed at a price different from the desired price.

3. Passive Income

• Limit orders can be used to create passive income by placing buy orders below the market price and sell orders above the market price.

The bot can also use createOrder to place limit sell orders.

By using a trading bot to automate limit order creation, traders can optimize their trading, increase efficiency and respond to market opportunities 24/7.

Basic Code

Disclamer: We provide basic codes to avoid information leaks

Limit Order Creation Function

// import web3

def create_limit_order(w3, pair, amount, price, side): """Creates a limit order.

  Args: w3: Web3 object connected to the wallet. pair: Trading pair (e.g. "ETH/XYZ"). amount: Order amount. price: Order price. side: Order side ("buy" or "sell"). """ # Create exchange contract exchange_contract = w3.eth.contract( address="YOUR_EXCHANGE_CONTRACT_ADDRESS", abi="YOUR_EXCHANGE_CONTRACT_ABI" )

  # Create limit order if side == "buy": order = exchange_contract.functions.createOrder( pair, amount, price ).buildTransaction() elif side == "sell": order = exchange_contract.functions.createLimitSellOrder( pair, amount, price ).buildTransaction() else: raise ValueError("Unknown side of order.")

  # Send order transaction_hash = w3.eth.sendTransaction(order)

  return transaction_hash
  
# Replace these variables with the desired values pair = "ETH/XYZ" amount = 1 price = 0.1 side = "buy"

# Connect to Web3 and wallet w3 = connect_to_wallet(private_key, network)

# Create a limit order transaction_hash = create_limit_order(w3, pair, amount, price, side)

# Wait for the order to be executed receipt = w3.eth.wait_for_transaction_receipt(transaction_hash)

# Check if the order has been executed if receipt["status"] == 1: print("Limit order created.") else: print("Failed to create limit order.")