Order Types

While range orders in concentrated liquidity protocols resemble limit orders in traditional orderbook markets, there are key differences due to how liquidity is structured. With concentrated liquidity, range orders can effectively support both take-profit orders and buy-limit orders.

Take-Profit Orders

Suppose the current BTC-USDC pool price is 20,000 USDC/BTC, and you want to sell BTC when the price reaches 21,000 USDC/BTC. This can be done using a range order because, in concentrated liquidity pools, price ranges above the current market price are denominated in the higher-value token. By opening a narrow range (e.g., 21,000–21,001 USDC/BTC) and depositing BTC, your order will automatically execute once the price rises into that range.

Buy-Limit Orders

Now imagine the BTC-USDC pool price is 20,000 USDC/BTC, and you expect a rebound if BTC drops to 19,000. You can place a buy-limit order using range orders since ranges below the current price are denominated in the lower-value asset, USDC. By setting a narrow range (e.g., 19,000–19,001 USDC/BTC) and supplying USDC, your liquidity will convert into BTC once the price falls into your selected range.