How to trade
Last updated
Last updated
When opening the trade page, you can execute a trade.
There are two types of trade: You can either sell a token or buy a token. In both cases, you have to give funds from one token to receive funds in another token. The difference is that when you sell a token, the fee is taken from what you receive. When you buy, the fee is added to what you give. When you enter an amount in the upper field, it is calculcated how much you receive when selling the entered amount. When you enter an amount in the lower field, it is calculated how much you have to give in order to receive the desired amount, including the fee you have to pay.
Keep in mind that executing trades involves paying a gas fee in XKP, so when selling the maximum amount of XKP, there might not be enough funds left to pay the gas fee.
Some currencies might only have very little liquidity present on the DEX, or you cannot receive the amount you requested for the given price. If you aim to buy a large amount and end up receiving less than there is available, the trade will fail. If you are okay with receiving less than what you initially set, you can set a minimum trade amount. In cases where this option is applied and the trade is executed with a smaller amount, the amount you initially set for selling will be lowered as well.
When entering an amount to sell, the website shows how much you are likely to receive and the price you are likely to pay. Keep in mind that when the trade is executed, time may have passed, resulting in slightly different prices. The price that was shown to you is used as reference: At the moment the trade is executed, it is checked how much the price differs from what was shown to you on the website. As to not have you pay an unexpectedly high price, the trade will fail when the price differs too much from what was shown to you. That tolerance is called slippage and you can set how much slippage you are willing to accept.
With each executed trade, the prices of the affected tokens slightly change. If a trade touches two tokens with very deep liquidity and you sell tokens worth $1000, the tokens you receive might be worth $999.99, i.e. the price change hardly affected you. However, for tokens with only little liquidity, price changes have a higher impact and you could end up with tokens being worth $990. The change between the value of what you give and what you receive is epxressed as the spread.
