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Limit Orders For NFTs.
Introducing limit orders for NFTs!
For the first time ever, using Extract, users can now place limit orders for buying and selling NFTs.
What is a limit order? A limit order is a type of transaction that is set by a user to execute a trade at a specific price. Limit orders are usually only used on tokens/coins, but are now available through Extract for NFTs.
Users can set a limit buy or sell order before they go to bed or step away from the computer, if the pool price reaches the specified price level the trade will be executed.
This allows users to buy at lower prices and sell at higher prices, all while not having to be online 24/7 to catch these swings in price.
Let's give 2 examples:
John would like to buy a specific NFT collection at 1000 ADA, but the floor price is currently 1300 ADA and its almost time to sleep. Using Extract John would be able to set a buy limit order under the specific collection he is looking at for 1000 ADA. If the pool price drops to 1000 ADA at any point in time the trade will be executed and John will wake up to a new NFT. John could also set multiple buy orders at descending prices to pick up multiple NFTs on the way down to an identified support level.
Sarah is trying to exit a collection at a higher price, the collection is currently pumping but she needs to head out of the house. Using Extract she can set sell limit orders, and ladder her sales. The collection Sarah holds is currently at 800 ADA and moving up, she has 5 NFTs. Sarah can set sell orders at 1000, 1100, 1200, 1300 and 1500. If the pool price moves up through these prices the trades will be automatically executed while she is out.
Using limit orders we can set new standards for NFT traders, increasing profits and lowering buy in prices.