The market module enable accounts to sell an amount of source tokens in exchange for an fixed amount of destination tokens, where the price is derived from either a specified amount of source and destination tokens or from market data on recent trades.
This is a generalisation of the classic limit order for two-sided markets:
| Side | Base | Term | Price |
|---|---|---|---|
| Buy | Destination Denom | Source Denom | Source Amount / Destination Amount |
| Sell | Source Denom | Destination Denom | Destination Amount / Source Amount |
As the destination amount is fixed, less than source amount of tokens will be paid if a better price exist in the market. Having the destination amount fixed is useful for payments where a fixed amount of foreign currency needs to be delivered.
No instrument listing required. Any token is immediately tradeable against other tokens.
No execution fees. This applies for both makers and takers, which only need to pay the standard transaction costs.
Optimized for liquidity. Orders do not touch the account balance until they are matched, so that makers can place multiple orders based on the same Source. When the balance of the owner account changes, SourceRemaining is adjusted accordingly and any untradable orders are canceled.
Takers always trade at the best price. In case there is a better price in the market, price improvement is passed to the taker who pays less than the specified amount of Source tokens.
Arbitrage-free. Sophisticated order matching ensures that no arbitrage opportunities exist in the market. Orders always trade at the best price by considering synthetic instruments, e.g. a single eUSD->eEUR order matched against eEUR->eGBP and eGBP->eUSD simultaneously.
Price/time priority matching. Orders at the same price will be ordered by OrderId, with the lowest matched first.
Immediate settlement. Matched orders are settled immediately with finality.