ZKEX: Understanding the Trading types and Fees structure
A deep dive into the trading types and fees feature of the ZKEX Dex
OVERVIEW
ZKEX is a decentralized exchange (DEX) that offers bridgeless multi-chain trading, secured with zero-knowledge proofs. It is a trustless and self-custodial order book DEX that provides CeFi performance. Unlike other DEXs, ZKEX allows users to trade assets across multiple chains with a similar experience as on Binance or Coinbase, but with decentralization, trust minimization, and non-custodial transactions.
The platform is built upon three pioneering zero-knowledge rollups: zkLink, Starkware, and zkSync. ZKEX aims to solve issues such as volatile liquidity, high slippage costs, unpredictable gas fees, and limited functionality while stuck on a single chain. Users can use their Metamask wallet to deposit/withdraw funds to ZKEX. Both spot trading and derivatives trading will be available. ZKEX’s order book works in a similar way to a centralized order book exchange, however, the execution of the matched orders is decentralized and trustless.
Let’s take a look at the different types of trading options available on the platform. Understanding these trading types is essential for any trader looking to make informed decisions and maximize their potential gains while minimizing their risks.
TRADING TYPES
The world of cryptocurrency trading can be complex and intimidating for newcomers, with various trading strategies and types to consider. One of the key factors to consider when choosing a cryptocurrency exchange is the trading types available, as they can greatly impact your trading success. In this article, we will take a deep dive into the different trading types offered by zkex, a leading cryptocurrency exchange platform.
We will explore the advantages of each trading type and how zkex’s platform provides users with the best possible trading experience. Whether you are a seasoned trader or a beginner, understanding the different trading types offered by zkex can help you make more informed trading decisions and achieve your investment goals.
- Limit Order:
A Limit Order is a type of order where a trader sets the maximum price they are willing to buy or the minimum price they are willing to sell a particular asset. Once the market price reaches the specified limit price, the trade is executed.
In the case of a buy limit order, the order will only execute if the market price falls below the limit price set by the trader. In the case of a sell limit order, the order will only execute if the market price rises above the limit price set by the trader.
The advantage of using limit orders is that it allows traders to set the price they are willing to buy or sell an asset and potentially get a better price than what is currently available in the market. This type of order is useful for traders who want to enter or exit a position at a specific price.
ZKEX allows users to place limit orders for various trading pairs, allowing them to enter or exit positions at a desired price. This can be especially useful in trading crypto assets as they tend to be very volatile markets where the price can rapidly fluctuate. By setting a limit order, traders can potentially avoid getting filled at a price they didn’t intend to trade at. Additionally, zkex offers low trading fees for limit orders, making it an affordable option for traders looking to place limit orders.
2. Market Order:
A market order is a type of order used to buy or sell an asset at the current market price. Unlike a limit order, which allows you to specify a price at which you want to buy or sell, a market order is executed immediately at the best available price.
Market orders are often used when the trader wants to buy or sell a particular asset quickly, without waiting for the market to move in a specific direction. However, there is no guarantee that the price at which the market order is executed will be the same as the current market price at the time the order is placed.
The advantage of using a market order is that it guarantees the execution of the trade, even if the market is moving quickly. Additionally, market orders are often used in highly liquid markets where the bid-ask spread is small and the price difference between the best available buy and sell orders is minimal.
Swap’s market order allows traders to buy or sell assets at the current market price. The advantage of using ZKEX Swap’s market order is that it ensures the execution of the trade quickly and efficiently, without having to wait for the market to move in a specific direction. Additionally, ZKSwap’s market order provides transparency in pricing, ensuring that traders are getting the best available price for their trades.
3. Stop Market:
So, let’s say you’re an investor and you’ve got your eye on a certain security. You’ve done your research, crunched the numbers, and you’re feeling pretty confident that this is a solid investment. But, as we all know, the stock market can be unpredictable, and things can change in the blink of an eye. This is where a stop market order comes in handy.
Basically, a stop market order is a way to limit your losses or protect your gains on a position. When you place a stop market order, you’re saying “hey, if the price of this security falls below a certain level (known as the stop price), I want to sell it”. This can be especially useful if you’re holding a long position and want to avoid potential losses, or if you’re holding a short position and want to protect against the price rising.
At zkex, users can place stop market orders for both buy and sell orders, which gives them greater control over their investments. The platform’s advanced matching engine ensures speedy execution of stop market orders, while its user-friendly interface makes it simple to set your stop prices and manage your positions. It’s a great tool for any investor looking to mitigate risk and protect their investments.
4. Stop Limit:
When it comes to trading cryptocurrencies, stop-limit orders can be a useful tool for managing risk and maximizing profits. Essentially, a stop-limit order allows traders to set both a stop price and a limit price for buying or selling an asset.
For instance, let’s say you own some Bitcoin that’s currently valued at $50,000 per unit, but you want to sell it if it drops to $45,000. By placing a stop-limit order, you can set a stop price of $45,000 and a limit price of $44,500. This means that if the price drops to $45,000, your order will be triggered and your Bitcoin will be sold at the best available price, up to a maximum of $44,500 per unit.
With zkex, traders can take full advantage of stop-limit orders when trading cryptocurrencies. This feature enables traders to manage their risks more effectively by setting maximum buying or selling prices for their assets. By doing so, they can ensure that they get the best possible price for their trades while minimizing their losses.
The platform’s user-friendly interface allows traders to easily set stop and limit prices, and its advanced matching engine ensures that orders are executed quickly and efficiently. Whether a trader is a beginner or an experienced professional, zkex provides the tools and resources necessary to succeed in the fast-paced world of cryptocurrency trading.
5. Trailing Stop:
A Trailing Stop order is a type of stop loss order that is designed to follow the price of an asset as it moves in the trader’s favor. With a Trailing Stop order, the trader sets a certain distance (or “trailing”) between the current market price and the stop price. As the market price moves in the trader’s favor, the stop price follows it, maintaining the same distance from the market price.
For example, let’s say a trader buys an asset at $10 and sets a Trailing Stop order with a distance of $2. If the market price goes up to $12, the stop price will move up to $10 (the original purchase price) plus $2, or $12. If the market price then drops to $11, the stop price will move down to $9 (the original purchase price) plus $2, or $11.
Using ZKEX Swap Exchange feature, traders can use Trailing Stop orders to automate their trading strategy and maximize their profits while minimizing their risks. By setting a Trailing Stop order, traders can avoid emotional decision-making and stick to their trading plan, knowing that their position will be automatically closed if the market turns against them.
The advantage of a Trailing Stop order is that it allows traders to capture profits while minimizing losses. If the market price moves in the trader’s favor, the Trailing Stop order will follow it, allowing the trader to capture more profit. If the market price turns against the trader, the Trailing Stop order will be triggered, limiting the loss.
6. Take Profit:
Take profit is a type of order that is used to automatically close a trade when a specific profit target has been reached. It is designed to help traders lock in profits and avoid the potential for a trade to turn against them.
When a trader places a take profit order, they specify the price at which they would like to close their position. If the market reaches that price, the take profit order is executed and the trade is closed. The advantage of using a take profit order is that it eliminates the need for the trader to constantly monitor the market and make manual decisions about when to exit a trade.
In ZKEX take profit feature, users can set the take profit order as a percentage of their investment or a specific amount. For example, a user could set a take profit order at 10% above the purchase price, or they could set a take profit order at a specific price point. The take profit limit order is also available, which is similar to the take profit order but allows users to set a minimum sell price instead of a fixed price.
Overall, the take profit feature offered by ZKEX can be a valuable tool for traders who want to automate their trading strategies and manage their risk effectively. By setting a take profit order, traders can lock in profits and avoid the emotional decision-making that can lead to bad trades.
FEES STRUCTURE
The team aims to provide its users with a cost-effective way to trade their cryptocurrencies. One of the ways it achieves this is through its fee structure, which is designed to minimize costs for users while still providing them with the features they need to trade effectively.
Firstly, ZKEX does not charge any activation fees for users to open their L2 accounts. This means that users can start trading on the platform without having to pay any upfront fees.
Secondly, there are no deposit fees for users to deposit funds onto the platform. However, users may need to pay a gas fee to the blockchain they are sending assets from. The gas fee is a charge from the L1 chain(Ethereum) when moving funds to/from L1 (on-chain) <> L2 (off-chain), which can vary depending on network congestion. Once the funds are on the L2 layer, there are no gas fees associated with trading.
The fee structure for trading on ZKEX has not yet been confirmed, and will be released before the mainnet launch. This means that users will have a clear understanding of the trading fees before they start trading.
Finally, ZKEX charges withdrawal fees that vary depending on the destination network and token used. There are two types of withdrawal fees: regular and fast. The exact fees for these types of withdrawals have not yet been confirmed, but they will be released before the mainnet launch as well.
CONCLUSION
ZKEX is a cutting-edge cryptocurrency trading platform that offers users a wide range of features to enhance their trading experience. From a simple and intuitive user interface to advanced trading options like limit orders, market orders, stop orders, and more, ZKEX caters to traders of all levels. Additionally, ZKEX’s commitment to security and low fees make it an attractive option for traders looking for a reliable and cost-effective platform to buy and sell cryptocurrencies.
While ZKEX’s fee structure is subject to change and certain fees may vary depending on network congestion, the platform’s transparent fee policy ensures that users are informed of any costs associated with their transactions. Furthermore, the absence of activation and deposit fees, as well as the low gas fees for L2 transactions, makes ZKEX an appealing choice for traders looking to minimize their trading costs.
Overall, ZKEX is a platform worth considering for any trader looking to buy and sell cryptocurrencies in a safe, reliable, and cost-effective manner. Its array of features, commitment to security, and low fees make it a platform that is well-positioned for continued growth and success in the dynamic and rapidly evolving world of cryptocurrency trading.
Find out more from the relevant links below:
Website: https://zkex.com/
Discord: https://discord.com/invite/ctDAYrrNTH
Documentation: https://docs.zkex.com/userdocs/Concepts/Overview
Twitter: https://twitter.com/ZKEX_Official
