Frequently Asked Question

What are Accumulation and Distribution orders and how do they work?

Last Updated 2 years ago

Accumulation and distribution order types allow you to schedule automatic Buy (Accumulation) and Sell (Distribution) order placements between the highest Buy orders and lowest Sell orders which currently exist on a market. This ensures that your orders hold the best possible position on the order book as a buyer or a seller because trades on your orders will be executed at the highest possible price (Sell) or lowest possible price (Buy).

On placement of this order type, you will also specify the desired amount of a coin you wish to buy (accumulate) or sell (distribute), i.e. the process of automatically placing orders will continue until this specified amount has been reached as a result of trades on these placed orders. In addition, Accumulation and distribution orders can be fully customized according to your needs and desired outcomes through various other settings which can be specified on placement as outlined below.

A Distribution/Accumulation order type is, therefore, a process that will automatically place Buy or Sell orders based on the settings specified by you and what is happening in the market on which it was placed until you have bought/sold your desired amount of a coin.

How Accumulation and Distribution orders work.

How Accumulation/Distribution orders work will be determined by your settings specified on placement and changes in a market as a result of trading by other users. The settings and situations which could influence the placement of orders are outlined below:

The following settings and combinations thereof can be specified on placement:

  • Price Change - Defines by how much the price of each new order placed should increase or decrease.
  • Above Highest bid/lowest ask - Order will be placed above the current highest bid or lowest ask price in the order book at the incremented price change specified.
  • Below Highest bid/lowest ask - Order will be placed below the current highest bid or lowest ask price in the order book at the incremented price change specified.
  • Use Buy/Sell order price - Order placements and other settings will be based on current prices of the opposite order type, i.e. for Distribution orders, prices will be based on current Buy orders and Accumulation orders will be based on current Sell orders. If this is not activated, prices will be based on order book prices of the same order type, e.g. Distribution order prices will be determined by current Sell orders in the order book.
  • Buy from Buy/Sell orders - Orders that will result in a trade will be placed, if this is not active, no orders will be placed, which will result in a trade but new orders placed after it may match against it.
  • Order placement amount - Amount at which each new order will be placed.
  • Maximum/Minimum Buy/Sell price - Maximum(Buy)/Minimum(Sell) price at which orders will be placed, i.e. once an order placement has reached this price subsequent orders will be placed at the same price once traded and not be increased/decreased.
  • Total Amount to Buy/Sell - Total Amount of a coin that you wish to buy/sell, once this amount has been reached the Accumulation/Distribution order will be stopped.
  • Seconds between Order Placement - The time between order placement.

The following requirements relating to the settings above apply:

  • Either the above or below highest bid/lowest ask options should be selected on placement.
  • A price change amount should be specified on placement.
  • An order placement amount should be specified on placement.
  • A maximum price should be specified on placement.
  • The order placement amount multiplied by the maximum buy/sell price should be higher than 0.0001.
  • Seconds between order placement amount of higher than 10 seconds and lower than 1 hour should be specified on placement.

The following general rules apply to the placement of orders through Distribution and Accumulation order types and interactions with markets exist:

  • Only one Distribution or Accumulation order can be active per market, i.e. you can not have a Distribution and Accumulation order active at the same time on the same market or have more than one Distribution or Accumulation order active either on the same market.
  • The process will be canceled once you have run out of balance and new orders cannot be placed.
  • The process will aim to only have one active order at a time, i.e. once it places a new, better-positioned order than a previous one, the previous order will be canceled.
  • Relative to the above, new orders will not be placed at new prices if the user's current active order already holds the best possible position based on their specified settings. The process will, therefore, be paused until something in the market happens which results in them no longer having the best position.
  • The process will be canceled once you have obtained or sold your desired amount of coins.

PLEASE NOTE: Placing a Distribution and Accumulation order will result in the system automatically placing orders on your behalf based on the settings that were specified until your specified amount has been received or sold. The system will, therefore, be performing trades and spending your money on your behalf. It is essential that your settings are 100% correct as we are unable to refund or cancel any live orders or trades which resulted from placing Distribution and Accumulation orders, so please take care when placing these order types.

While this topic outlines what Distribution and Accumulation orders are and how they work, it is recommended that you also read through the following topics to gain a better understanding and receive further assistance:

Distribution and Accumulation order examples - Provides examples of an Accumulation and Distribution process and illustrates how specified settings and market situations influence the order placement process.

How to place a Distribution or Accumulation order - A tutorial on how to place these orders.

How to cancel a Distribution or Accumulation order - A tutorial on how to cancel these orders.

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