Limit Orders
Overview
A Limit Order is an account that specifies a Tick index and buy or sell instructions, triggering an automatic trade when the FusionPool’s price reaches the Tick’s associated opening price.

Benefits of Precision Trading with Limit Orders
Limit Orders in Fusion AMM provide significant advantages for both creators and swappers in a FusionPool.
Creators can set a buy or sell instruction at a Tick’s associated price for automatic execution, protecting against abrupt price swings. Another benefit is that it enables complex trading strategies with precise control over trade prices.
Swappers benefit from reduced slippage, as Limit Orders add liquidity at targeted Ticks.
Price Movement Influence
Limit Orders significantly impact liquidity in a FusionPool, consequently affecting how the price moves across Ticks.
A Limit Order is nothing more than liquidity added at specific price points. By leveraging the standard Tick structure, which tracks prices and liquidity, Fusion AMM allows for Limit Orders to be attached to the opening price of a Tick, tracking tokens to be traded as Liquidity, similar to Positions. This creates strong price resistance, stalling movement until all Limit Orders at the Tick are fulfilled, thereby increasing liquidity and reducing slippage for swaps.
Limit Orders Liquidity
In FusionPools, limit orders provide liquidity at a tick’s opening price. When multiple limit orders exist within the same tick, liquidity is shared proportionally among them, with no FIFO (first-in, first-out) priority before the pool’s price crosses the tick. Each order’s traded amount depends on its share of the tick’s total limit order liquidity. If a tick’s liquidity is partially traded and the price moves away, new limit orders in that tick are assigned secondary priority. The pool must fully exhaust the partially traded liquidity before trading the newly added liquidity. For more details, see Price and Ticks or Limit Orders.
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