SuperEx Guide: Spot Trade FAQ

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In many people’s crypto investment journeys, Spot Trading is often the very first stop.

To help everyone better understand the basic rules of spot trading, we have compiled this SuperEx Spot Trading FAQ Guide. In this article, we will answer some of the most common questions about spot trading in the most intuitive and straightforward way.

Whether you are a newcomer who has just entered the crypto market or a trader with some experience, we hope this FAQ can help you quickly resolve your questions and make your trading experience smoother.

What is Maker？

Maker: Refers to the order placed by the party who quotes first, that is, to set up an order first, limit its price and quantity, and wait for other users to make a deal with it. If there is no matching order in the market for the time being, then this order will always be hung on the exchange’s order book to provide quotations for the entire market.

What is Taker?

Taker: Refers to take the initiative to deal with the orders that have been placed, that is, to place a certain number of orders based on the existing order prices on the exchange order, and immediately execute the orders placed on the order. If the entrustment demand of the taker is large and the supply exceeds the demand, the unsatisfied demand will become a new entrustment order as a pending order and continue to wait for the transaction if the order is not cancelled.

The Maker makes a quotation first, and the price matches, and the Taker who quotes later takes the initiative to conclude a deal with the placed order. This is the definition of Maker and Taker in spot trading.

What Are Limit Orders and Market Orders?

When placing a buy or sell order in trading, the most commonly used order types are limit orders and market orders. You can choose the order type according to your needs. Currently, spot trading only supports market orders and limit orders.

1. Limit Order

Definition: A limit order specifies a price and quantity (the order enters the order book after placement).
A limit order allows users to set the order quantity and the maximum acceptable purchase price or minimum acceptable selling price. When the market price meets the user’s set conditions, the system will execute the order at the best price within the limit range.

Example 1: If the current BTC market price is 53,000 USDT and you want to buy at a cheaper price of 52,900 USDT, you can place a limit order at 52,900. Once the market price drops to 52,900 USDT or lower, your order will be automatically executed.

2. Market Order

Definition: A market order buys or sells at the best available price in the market.A market order allows users to execute a trade immediately at the current best market price, ensuring fast transactions.

Example 1: If the latest BTC price is 53,000 USDT and you want to buy BTC immediately at market price, you can place a market order and specify the total amount, such as 40 USDT. The order will be executed immediately. In a highly volatile market, the execution price may not be exactly 53,000 USDT — it could be higher or lower depending on real-time market fluctuations.

Differences Between Limit Orders and Market Orders:

A limit order requires manual input of the desired transaction price, whereas a market order does not require a price and executes immediately at the current market rate.
A single market order cannot exceed a total value of 100,000 USDT. If it does, the order will fail.
Limit orders do not freeze trading fees before execution, while market orders will have trading fees temporarily frozen until the order is completed.

What’s Impermanent Loss and How to Avoid It

What is Impermanent Loss?

Impermanent loss refers to the temporary loss incurred by liquidity providers (LPs) in an Automated Market Maker (AMM) environment due to market price fluctuations. When prices rise or fall, the value of assets obtained after withdrawing liquidity may be lower than the value of simply holding the assets. This loss occurs because of the constant product pricing mechanism of AMM. As prices revert, impermanent loss will gradually diminish.

Example of Impermanent Loss

Assume a liquidity pool contains 1,000 POL and 500 USDT, with a constant product of 1,000 * 500 = 500,000. Liquidity provider Lares holds 10% of the POL/USDT pool, or 100 POL and 50 USDT, where 1 POL = 0.5 USDT.
Over time, the price of POL increases, changing the asset ratio to 500 POL and 1,000 USDT. The constant product (500 * 1,000 = 500,000) remains unchanged, and 1 POL = 2 USDT. Lares’ share changes to 50 POL and 100 USDT.
If Lares withdraws liquidity, they will receive 50 POL and 100 USDT, valued at 50 * 2 + 100 = 200 USDT.
If Lares had held 100 POL and 50 USDT without providing liquidity, their assets would now be worth 100 * 2 + 50 = 250 USDT. The difference (50 USDT) represents impermanent loss.

Note: Transaction fees are excluded for simplicity.

How to Mitigate?

Impermanent loss is common in early market-making or one-sided market trends. It can be mitigated over time as transaction fees accumulate and prices stabilize, eventually leading to realized market-making profits.