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executeAutomationOpenOrderCallback Executes STOP Orders at a Worse Price

Low/InfoOstium·Three Sigma · RWA perpetuals DEX · 19th February, 20243S-OS-L03

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Description

The condition executed when the OpenOrderType is of type STOP, as seen here, triggers when the current price is greater than or equal to the target price.

This approach results in traders potentially receiving a worse price compared to using price after impact >= target price. This is because when buying, the price typically rises, meaning that the target price may be reached sooner than when using the current market price.

Recommendation

Use: cancelReason = ( o.orderType == IOstiumTradingStorage.OpenOrderType.LIMIT ? (o.buy ? priceAfterImpact > o.targetPrice : priceAfterImpact < o.targetPrice)

  • : (o.buy ? uint192(a.price) < o.targetPrice : uint192(a.price) > o.targetPrice) + : (o.buy ? priceAfterImpact < o.targetPrice : priceAfterImpact > o.targetPrice) )

Status

Acknowledged