The main features of Multi-limit mode.
Multi-limit is a method of placing orders in the spot market that allows users to create order grids by setting a price range, the number of orders in the grid, and a choice between geometric or arithmetic progression to generate order prices within a specified grid range.
By using the new Multi-limit tool, users can improve their trading experience and automate their strategies. In this article, we will take a closer look at this tool, explaining each aspect of it in plain language.
The main features of Multi-limit mode include:
- Setting the upper and lower price range for orders in the grid, as well as the investment amount;
- Automatic calculation of the price of each grid order, depending on the selected price range and the selected mode (arithmetic or geometric);
- Possibility to create grids containing up to 15 orders;
- Preview of the order grid before placing it.
After confirmation, each limit order created within the Multi-limit grid will be displayed in the Open Orders section in the lower section of the trading terminal, near Trade History.
Arithmetic progression mode.
Arithmetic progression provides traders with the ability to create orders with constant price increments between them. This is especially useful when an equal distribution of orders within a given price range is required.
Let's look at an example of a grid to buy BTC on the BTC_USDT market with a price range of 27299 to 24799 and an Invest Amount of 800 USDT:
- You want to place 5 orders in this range with equal interval between them, and you have 800 USDT to invest.
- You select the arithmetic progression mode and specify the starting price (27299), the ending price (24799), the number of orders (5) and the amount to be invested (800 USDT).
The system will automatically calculate the price of each order, taking into account the arithmetic progression, and place them as follows:
- Order price 26799, investment: 160 USDT
- Order price 26299, investment: 160 USDT (decrease by 500 compared to the previous one)
- Order price 25799, investment: 160 USDT (decrease by 500 compared to the previous one)
- Order price 25299, investment: 160 USDT (decrease by 500 compared to the previous one)
- Order price 24799, investment: 160 USDT (decrease by 500 compared to the previous one)
Thus, using arithmetic progression, you create an even grid of orders to buy BTC in the specified price range on the BTC_USDT market, while investing the entire available amount of 800 USDT. This provides a more flexible and controlled approach to your trading strategy given the specified investment amount.
Geometric progression mode with uniform distribution of the sum.
Geometric progression provides traders with the ability to create orders with price changes in geometric progression, with the amount per order distributed equally. Let's look at an example of a grid to buy BTC on the BTC_USDT market with a price range of 27299 to 24799 and an investment amount of 800 USDT:
- You want to place 5 orders in this range with exponential price change and equally distributed amount.
- You select the geometric progression mode and specify the top price of the range (27299), the bottom price of the range (24799), the number of orders (5) and the investment amount (800 USDT).
The system will automatically calculate the price of each order using geometric progression and distribute the investment amount evenly between them.
To evenly distribute the amount (800 USDT) to each order, we can use geometric progression. Let each order be with the same amount and with the ratio of prices in geometric progression (R):
(we count prices in the examples taking into account 2 decimal places, which may slightly affect the accuracy of price calculations).
R – coefficient
n – number of orders
Pn - order price
R = (hight_price/low_price) ^ (1/n)
R = (27299 / 24799) ^ (1/5) = 1.01939
Now, using this R value, we can calculate the prices of each order according to a geometric progression:
Pn = low_price*R ^ (n-1)
P1 = 24799 × 1.01939 ^ (1-1) = 24799
P2 = 24799 × 1.01939 ^ (2-1) = 25279.85
P3 = 24799 × 1.01939 ^ (3-1) = 25770.02
P4 = 24799 × 1.01939 ^ (4-1) = 26269.70
P5 = 24799 × 1.01939 ^ (5-1) = 26779.07
1. Order price 26779.07 USDT, investment: 160 USDT
2. Order price 26269.70 USDT, investment: 160 USDT
3. Order price 25770.02 USDT, investment: 160 USDT
4. Order price 25279.85 USDT, investment: 160 USDT
5. Order price 24799 USDT, investment: 160 USDT
Now we have a grid of 5 orders to buy BTC in the specified price range on the BTC_USDT market, with each order having the same investment amount of 160 USDT. This method ensures order distribution closer to the last price and earlier buy/sell than arithmetic mode.
Let's compare arithmetic and geometric progression.
Arithmetic | Geometric | Volume | |
1 | 24799 | 24799 | 160 |
2 | 25299 | 25279.85 | 160 |
3 | 25799 | 25770.02 | 160 |
4 | 26299 | 26269.70 | 160 |
5 | 26799 | 26779.07 | 160 |
Avg | 25799 | 25779,52 |
According to the average price of generated orders, we observe that with geometric progression the average price of all orders tends to the lower limit (the difference is more noticeable when the number of orders increases). This means that we implement most of the investment amount earlier at the same price change in the market.
Multi-limit implementation in API.
To implement functionality similar to multi-limit, but with API, we recommend using Bulk limit-order, which allows you to create up to 20 limit orders simultaneously, as well as our project with SDK.
Please note that the implementation of the logic of price calculation and investment allocation should be developed separately.
Step 1. Website: go to the Spot tab in the Trade section. Select a pair or go directly to the mode setting interface. Let's look at the example of the BTC/USDT pair.
Application: you can find this feature in the WhiteBIT Products section. Click on “View All” and select “Multi-Limit”.
Step 2. Select the Multi-Limit mode in the terminal and set the lower and upper price range limits. Please note that if you want to buy an asset higher than the market price, orders within the Multi-Limit mode with such a price will be executed immediately at the current market price. A similar situation will happen if you want to sell an asset using Multi-Limit at a price less than the market price, that is, orders with a lower price will be executed immediately at the market price.
Fields for specifying the minimum and maximum price of an asset
Step 3. Choose how the cost of orders will change from two modes: Arithmetically or Geometrically. With arithmetic progression, the price of all buy or sell orders will differ equally. With geometric, the price will increase or decrease proportionally. In this case, the total investment amount will be evenly distributed among all orders in the grid.
Field for selecting the price change mode in orders
Step 4. Set the number of orders and select the asset you want to buy or sell, if you have not already done so. The degree of breakdown can be selected from ready-made values: 3, 5, 10, 15, or you can specify the number of orders manually. The minimum number of orders that can be placed within one Multi-Limit grid is 2, and the maximum is 15.
Field where you need to indicate the number of orders that will be submitted
Step 5. The system will calculate the minimum required investment amount based on the number of orders and the selected asset. This is the recommended figure. The final decision is yours. Therefore, manually specify the investment amount and click “Buy” to place a Multi-Limit.
Set the investment amount and click “Buy”
Step 6. All that remains is checking whether everything is correctly indicated and confirming the placement. You can view the details of each order in the confirmation window that appears by clicking on “Show orders list.”
Multi-Limit confirmation
You can see all active Multi-Limit grids and the orders included in them in the “Multi-Limits” and “Open Orders” tabs, which are located under the order placing terminal of our exchange.
Support.
In case of difficulties or any questions while applying Multi-limit mode, please contact our support team. To do this, you can:
- Submit a request;
- Write to the support email support@whitebit.com ;
- Contact us via online chat using bottom right of the screen.