Frequently Asked Question
Distribution and Accumulation order examples
To assist you in understanding Distribution and Accumulation orders, here are a couple of examples of this order type and how your settings and market situations influence the order placement process.
It is recommended that you first go through this topic to understand what Distribution and Accumulation orders are and how they work before going through these examples.
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
Since the maximum order price specified on placement was 0.02, the process will now pause because the last order placed was at 0.02. A new order will only be placed once this order has been matched/traded, but the new order will also be placed at 0.02. This process will repeat until the user's desired amount to buy, specified on placement, has been reached.
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 10 coins have been sold and the amount of coins to sell settings was equal to 10, the user's desired outcome has been reached and the process will now be canceled.
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.