Academy
Welcome to OraiDEX's CeDeFi trading experience, where we bring the best of both worlds - the power of centralized exchanges (CEX) and the security of decentralized finance (DeFi). In this guide, we'll walk you through one of OraiDEX's most exciting features: the Order Book. With the Order Book, you'll have unprecedented control over your trading strategies within a fully decentralized environment.
Understanding CeDeFi and OraiDEX
In the world of cryptocurrency trading, two main types of exchanges dominate: Centralized Exchanges (CEX) and Decentralized Exchanges (DEX). Understanding the differences between these two is crucial, especially if you're new to the crypto landscape.
Centralized Exchanges (CEX) are platforms that operate much like traditional stock exchanges. They act as intermediaries between buyers and sellers, holding custody of user funds. While CEXs offer high liquidity and a familiar trading experience, they often come at the expense of user control and decentralization. Users are required to trust the exchange with their assets, which can bear potential risk.
Decentralized Exchanges (DEX), on the other hand, operate without intermediaries. They allow users to trade directly from their wallets, which means you retain full control over your funds.
So, let's take a closer look at OraiDEX. As the name suggests, OraiDEX is a CosmWasm smart contract-based decentralized exchange platform that embodies the principles of CeDeFi, a fusion of centralized and decentralized finance. It's here to offer something truly distinctive in the crypto trading realm: multichain interoperability, blazing speed, and a myriad of liquidity options. OraiDEX seamlessly combines the strengths of CEX-style trading with the security of DeFi, aiming to provide you with the best of both worlds. As you embark on this CeDeFi journey with OraiDEX, rest assured that you're trading with a platform that values choice, control, and security.
A Comprehensive Guide
OraiDEX prioritizes user experience, and the Order Book reflects this commitment. With its intuitive interface, trading becomes accessible to everyone, regardless of their level of experience in the crypto world.
So, let's dive right into using the Order Book effectively. In this step-by-step guide, we'll walk you through essential tasks like placing orders, setting limits, and interpreting market data. Whether you're a seasoned trader or new to crypto, OraiDEX ensures that you can navigate the world of CeDeFi trading with ease.
Before going into details, let's start with the basics.
Accessing OraiDEX's Order Book
Go to OraiDEX's website: https://oraidex.io/ and click on “Order Book" feature in the left sidebar
or you can go straight to https://orderbook.oraidex.io/
Here you go, this is OraiDEX's Order Book main page:
While it might appear overwhelming at first glance, we'll simplify the process step by step.
Order Book Overview
The Order Book displays a real-time list of buy and sell orders for the selected trading pair.
On this page, there is currently one token pair available: ORAI/USDT.
Below the token pair, you'll find the real-time price of ORAI tokens in USDT. In this case, it means 1 ORAI is equal to 2.215 USDT.
On the top left side of the page, you can see the balance of tokens in your wallet.
Price Chart
The price chart visually represents the historical price movement of the selected trading pair.
You can customize the chart by adjusting the time frame to your preference.
Candles and Timeframes
The price chart is typically displayed in candlestick format. Each candle represents a specific timeframe, which could be minutes, hours, days, or more, depending on your choice. These candles provide a visual representation of the price movement within that timeframe.
For instance, if you're looking at a chart with one-hour candles, each candlestick will show you the price at the beginning (open), the highest point it reached (high), the lowest point (low), and the price at the end (close) of that one-hour period. Analyzing these candlesticks over different timeframes allows you to spot trends and make informed trading decisions.
Volume
The volume section, often found below the price chart, displays the trading volume for the selected trading pair. It represents the total amount of the asset traded during a specific timeframe. High volume indicates more significant market activity, while low volume may signify a lack of interest or quieter trading periods. Paying attention to volume can help you gauge the strength of price movements and identify potential market trends.
Understanding these components of the price chart is essential for effective technical analysis and decision-making on OraiDEX. It's your window into the market's past performance, allowing you to make informed predictions about its future movements
Order Form
This is where the action happens. You can place buy or sell orders directly from this form, and it's crucial to understand the different types of orders available.
Spot Trading
Spot trading on OraiDEX refers to the immediate exchange of one cryptocurrency for another at the current market price. When you place a market order for spot trading, you're essentially buying or selling the chosen cryptocurrency at its current price in the spot market, where assets are traded for immediate delivery. This is the most straightforward form of trading and is commonly used for quick, direct exchanges.
This is where the action happens. You can place buy or sell orders directly from this form.
Input the quantity of tokens you wish to trade. In the image below, the market price of 1 ORAI is 2.215 USDT.
Pay attention to the slider; it's a useful tool for managing and controlling the number of tokens from your wallet that are available for trading. When the slider is set to 100%, it means you're allocating your entire token balance for trading.
Limit Orders
With a limit order, you specify the price at which you want to buy or sell and the quantity of tokens you wish to trade. This type of order provides you with more control over the execution price, allowing you to set your desired price level. This is commonly used by traders who have specific price targets in mind and are willing to wait for the market to reach those levels.
In the example below, I aim to purchase 2 ORAI tokens at a specified price of 1 USDT per ORAI, resulting in a total order value of 2 USDT.
Open Orders
Proceed the buying/selling process by clicking on the according button. Then, in the pop-up message, click on “Approve" to confirm the gas fee (paid by ORAI) and the transaction.
After placing an order, it will appear in the 'Open Orders' tab. This section provides an overview of your active orders, both buy and sell orders that are awaiting execution.
You can manage and cancel these open orders from this section.
For a record of past orders, simply click on 'Order History' to access your order history.
6. Recent Trades
Here, you can view the most recent trades executed for the trading pair.
This helps you stay updated on market activity.
Wrapping up
Order Book is your key to unlocking the potential of CeDeFi trading on OraiDEX. We've designed it with you in mind, making trading simpler, more efficient, and more secure. By embracing CeDeFi, OraiDEX is leading the way to a new era of decentralized trading, where you have the tools and control to trade like never before.
Stay tuned for more tutorials and insights as we continue to explore OraiDEX's features in our “xxx: Diving into the Ecosystem” series.
Ready to dive into the world of CeDeFi trading? Your journey starts here! 👉 https://orderbook.oraidex.io/
Disclaimer: Please note that this post is intended for educational purposes only and should not be considered as financial advice. It is crucial to conduct your own research and consult with experts before making any investment decisions.
