Frequently Asked Question
Distribution and Accumulation order examples
To help you better understand Distribution and Accumulation orders, we have provided examples of how these order types work and how your settings and market conditions can affect the order placement process. We recommend that you read through our guide on this topic before reviewing these examples. Click what Distribution and Accumulation orders are and how they work for more information.
Example/Scenario 1 - An Accumulation order on the ETH/BTC market
The settings specified on placement are as follows:
Price change: 0.001
Highest bid: above
Sell order matching (optional): buy from sell orders
Order placement amount: 10
Maximum buy price: 0.02
Total amount to buy: 20
Seconds between order placement: 10 seconds
1. Order book before the Accumulation order was placed.
10 @ 0.021
10 @ 0.020
-------------
10 @ 0.017
10 @ 0.016
2. Accumulation process places an order of 10 @ 0.018
10 @ 0.021
10 @ 0.020
-------------
10 @ 0.018 (Accumulation order)
10 @ 0.017
10 @ 0.016
3. 10 seconds later, an order of 10 @ 0.019 is placed and as a result, the order of 10 @ 0.018 is canceled.
10 @ 0.021
10 @ 0.020
-------------
10 @ 0.019 (Accumulation order)
10 @ 0.017
10 @ 0.016
4. 10 seconds later, an order of 10 @ 0.02 is placed which trades against the sell order 10 @ 0.02.
10 @ 0.021
-------------
10 @ 0.017
10 @ 0.016
5. 10 seconds later, another order of 10 @ 0.018 is placed.
10 @ 0.021
-------------
10 @ 0.018 (Accumulation order)
10 @ 0.017
10 @ 0.016
6. 10 seconds later, an order of 10 @ 0.019 is placed and as a result, the order of 10 @ 0.018 is canceled.
10 @ 0.021
-------------
10 @ 0.019 (Accumulation order)
10 @ 0.017
10 @ 0.016
7. 10 seconds later, an order of 10 @ 0.02 is placed which cancels the order of 10 @ 0.019.
10 @ 0.021
-------------
10 @ 0.020 (Accumulation order)
10 @ 0.017
10 @ 0.016
When you placed your order, you set the maximum price to be 0.02. If an order was placed at 0.02, the system will wait for that order to be matched or traded before placing a new order. The new order will also be placed at the same price of 0.02. This will continue until you reach the amount you wanted to buy.
Example/scenario 2 - A Distribution order on the ETH/BTC market
The settings specified on placement are as follows:
Price change: 0.001
Lowest ask: below
Buy order matching: Use buy order book price
Sell to buy orders
Order placement amount: 10
Minimum Sell Price: 0.017
Total amount to sell: 10
Seconds between order placement: 10 seconds
1. Orderbook before the distribution order was placed:
10 @ 0.021
10 @ 0.020
-------------
10 @ 0.017
10 @ 0.016
2. An order of 10 @ 0.019 is placed.
10 @ 0.021
10 @ 0.020
10 @ 0.019 (Distribution order)
-------------
10 @ 0.017
10 @ 0.016
3. 10 seconds later, an order of 10 @ 0.018 is placed and the order of 10 @ 0.019 is canceled.
10 @ 0.021
10 @ 0.020
10 @ 0.018 (Distribution order)
-------------
10 @ 0.017
10 @ 0.016
4. 10 seconds later, an order of 10 @ 0.017 is placed which results in a trade against the buy order of 10 @ 0.017.
10 @ 0.021
10 @ 0.020
-------------
10 @ 0.016
Since the number of sold coins has reached the amount set for selling, which was 10 in this case, the user's goal has been achieved, and the process will stop now.
For a tutorial on how to place a Distribution or Accumulation order, click here.
For a tutorial on how to cancel a Distribution or Accumulation order, click here.