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Outcome supports two order types: limit orders and market orders. Each makes a different tradeoff between price control and execution certainty.

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Limit orders

A limit order specifies the worst price you’re willing to accept. For a buy, that’s the maximum price you’ll pay. For a sell, the minimum price you’ll accept. A limit buy at 40 cents only fills if someone is willing to sell at 40 cents or lower. If no one matches, the order rests on the book at 40 cents until either the price moves to where someone will trade with you, or you cancel. Use limit orders when:
  • You have a specific price in mind and aren’t in a rush.
  • The spread is wide and you’d rather wait for a better price.
  • You’re willing to potentially not get filled.
The tradeoff is fill uncertainty. If the market moves away from your price, your order sits unfilled until you adjust or cancel it.

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Market orders

A market order takes whatever price is currently available, starting at the best price and walking through deeper levels of the book if needed. A market buy of 100 tokens with a best ask of 40 cents (for 50 tokens) and next ask of 41 cents (for 50 tokens) would fill at an average price of 40.5 cents: 50 tokens at 40 cents and 50 tokens at 41 cents. Use market orders when:
  • You need to fill immediately.
  • The spread is tight and slippage will be small.
  • The price you can get right now is acceptable.
The tradeoff is price uncertainty. In a thin book, your market order can walk through multiple price levels and end up with a worse average price than you expected. This is called slippage.

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Maker vs taker

Limit orders that rest on the book before filling are maker orders. Limit orders that fill immediately (because the price you set matches an existing offer) are taker orders. Market orders are always taker orders. The fee schedule differs between makers and takers. See Fees for current rates.

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Tick size and minimum order

Prices on Outcome are quoted in cents and range from 0.001 cents to 99.999 cents. The tick size is 0.001 cents, meaning prices move in increments of one one-thousandth of a cent. You can place a limit order at 40.001 cents, 40.002 cents, or 40.003 cents, but not at 40.0015 cents. The minimum order size is 10 USDC in value. For a buy at 40 cents per token, that’s at least 25 tokens. For a buy at 10 cents per token, at least 100 tokens. The minimum scales with the price so the total value stays at least 10 USDC.

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Choosing between them

The simple version: limit orders give you control, market orders give you speed. For most trading on Outcome, limit orders are the better default because they let you control your entry price. Use market orders when you need certainty of fill more than certainty of price.