💫Case Study: Order Status & Transition
A Practical Walkthrough
We'll explore the entire spectrum of order statuses through a detailed example, incorporating our platform's price range limit mechanism, the Circuit Breaker, for practical understanding.
For an in-depth understanding of the loan lifecycle, please visit the 'Order Life Cycle' section.
Order Status and Order Types
| Status \ Order Type | Market Order | Overlapping Limit Order | Limit Order |
|---|---|---|---|
Open | Not applicable; enters immediate execution | Rare; unless no overlapping order | Waits for the market to reach the limit price |
Partially Filled | Only used as a combined state; no remaining orders (ex. Partially Filled & Blocked) | Partial execution if not enough liquidity; remains until further filled or terminated | If the market reaches the limit price but not fully executable due to liquidity, stays until more activity |
Filled (Final) | Immediately fully executed at current market prices with sufficient liquidity | Fully executed once the market fully meets the limit price | Fully executed once the market fully meets the limit price |
Killed (Final) | Removed if cannot be fully executed due to lack of liquidity | Not applicable; remains in the market as Partially Filled or Open | Not applicable; remains in the market as Partially Filled or Open |
Blocked (Final) | Removed if cannot be fully executed due to circuit breakers | Not applicable; remains in the market as Partially Filled or Open | Not applicable; remains in the market as Partially Filled or Open |
Cancelled (Final) | Not applicable as they are executed immediately | Can be canceled before execution or after being Partially Filled | Can be canceled at any point before being fully executed |
Expired (Final) | Not applicable as they are executed immediately | Expires if not executed within a specific timeframe after being Partially Filled | Expires if the set timing (ex. maturity) passes without full execution |
Orderbook Scenario:
Our scenario unfolds within the bounds of an order book, structured around three key order types: 'Market Order', 'Overlapping Limit Order', and 'Non-Overlapping Limit Order'. Let's consider the following order book setup:
Market Orders:
Filled
Example: Buy 10 at market.
Transition: Order is Filled purchasing 10 units at 91.
Partially Filled & Killed
Example: Buy 20 at market.
Transition: Order is Partially Filled with 10 units at 91, remaining 10 units are Killed due to lack of liquidity up to the upper limit.
Partially Filled & Blocked
Example: Sell 10 at market.
Transition: Order is Partially Filled with 5 units at 89, remaining 5 units are Blocked then Killed due to no liquidity at the lower limit.
Overlapping Limit Orders:
Filled
Example: Buy 10 at 91.
Transition: Order is Filled with 10 units at 91.
Partially Filled
Example: Buy 15 at 93.
Transition: Order is Partially Filled with 10 units at 93. Remaining 5 units are kept open at 93 but cannot be executed until the market moves and the circuit breaker price is adjusted to allow execution.
Canceled
Example: After being partially filled, cancel the remaining order.
Transition: Remaining order is Canceled.
Expired
Example: Buy 15 at 91; remaining 5 units are kept open. Then no fill and lending market matures.
Transition: Order Expires after the maturity time passes.
Non-Overlapping Limit Orders:
Open
Example: Buy 10 at 89.
Transition: Order is Open, awaiting a match.
Partially Filled
Example: Buy 10 at 89 (total 15 Open on the orderbook), then another trader sells 10 at 89.
Transition: Order is Partially Filled with 5 units at 89, 5 units remain open.
Canceled
Example: After being partially filled, cancel the remaining order.
Transition: Remaining order is Canceled.
Expired
Example: Buy 10 at 89, no fill and lending market matures.
Transition: Order Expires after the maturity time passes.
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