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Academy Beginners Tutorial Article

Introducing the Price Lock trading bot

2022.09.21 OKX

Our latest trading bot, Price Lock, guarantees a percentage of your order will be completed at the price you select. Here’s how it works. ⚙️

What’s the Price Lock bot?

Price Lock is the latest addition to the comprehensive suite of trading bots we’ve developed. If you’re worried about missing out on a good price, but are too busy to constantly monitor market volatility, Price Lock can assist experienced traders by guaranteeing that a percentage of your order will be completed at your preferred price, regardless of market fluctuations.

You’ll find a detailed step-by-step guide below but here’s the gist of how it works:

  • Select the asset
  • Choose to buy or sell
  • Choose an expiry date
  • Select your preferred price

As you can see, the mechanics of the bot are simple. It does involve risk, however, and in that regard, it is best suited for more experienced traders. Here are some of its key features to keep in mind:

  1. Once you complete an order, the position’s funds are locked. You will not be able to cancel the order and withdraw the funds before the order’s expiration date. 
  2. The percentage of the order we guarantee depends on your target price and on the current market price. The further away your target price is from the current market price, the smaller the percentage will be – all the way down to zero. A limit message will pop up if you input a price outside of the acceptable range. So, no, we won’t guarantee you can buy BTC at $1 or sell BTC at $100,000 during a week when it trades around $25,000. 🙃
  3. The bot only observes the expiry price. If the market moves below the target price but then goes back above it, the Price Lock bot will only buy the percentage of the target price target that was originally set. 

Now, to flesh things out a bit more, here are two examples of how traders could use Price Lock. 👇

Scenario 1: Buying the dip

Imagine Bitcoin is trading at $22,000 and you believe there’s a chance it dips below $20,000 in the short term. In this hypothetical, you could use the Price Lock to buy 1 BTC at a price of $20,000, expiring, for example, in 7 days.

Once you’d have selected the parameters, Price Lock would calculate a guaranteed percentage of your order that would be executed, regardless of the token price at expiration.

If you accepted the terms of Price Lock’s calculated order, one of two things could happen:

  1. If Bitcoin was to drop to $20,000 or below at expiry, your full order would be executed at a price of $20,000.
  2. If Bitcoin wasn’t to drop to $20,000 or below at expiry, a guaranteed ratio of your order size would be executed at a price of $20,000 on the expiry date.

Scenario 2: Selling the rip

Now, imagine Bitcoin is trading at $22,000 and you believe it will bounce back above $24,000. You could use the Price Lock bot to open a 1 bitcoin selling position at $24,000, expiring, for example, in 7 days.

Similar to scenario 1, once you’d have selected the parameters, Price Lock would calculate a guaranteed percentage of your order that would be executed, regardless of the token price at expiration.

If you accepted the terms of the order, one of two things could happen:

  1. If Bitcoin was to rise to $24,000 or above at expiry, your full order would be executed at a price of $24,000.
  2. If Bitcoin was not to rise to $24,000 or above at expiry, a guaranteed ratio of your order size would be executed at a price of $24,000 on the expiry date.

This strategy allows you to lock in your preferred price – even if the target price never reaches it. Using Price Lock also allows you to sit back and wait for the expiration date to come, without having to worry about missing out on the dip or rip. 😌

Start trading

How to use the Price Lock bot

  1. On OKX’s navigation bar, hover over Trade and then click on Trading bot.
  1. The different trading bot strategies we offer will be listed here. Click on Price Lock.
  1. Select Buy or Sell, then choose the asset, enter the target price and the amount you want the bot to trade with, and select an expiration time.
  1. The Price Lock bot will calculate a guaranteed percentage of your order that will be executed at the target price you selected. If you agree, click Buy or Sell. Once you complete an order, the position’s funds are locked. You will not be able to cancel the order and withdraw the funds before the order’s expiration date.
  1. Check the details on your order in the Order Confirmation window. If you want to proceed, click Confirm.
  1. When you’ve deployed the Price Lock bot, you can review the position in the trade history section at the bottom of the Trading bot home screen.
  1. Scroll down, click Bots and then click Price Lock. For more details on an open position, click Details next to it. It will display detailed information about the position, including the locked price, guaranteed ratio, and expiration time.

Get started

THIS ANNOUNCEMENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY. IT IS NOT INTENDED TO PROVIDE ANY INVESTMENT, TAX, OR LEGAL ADVICE, NOR SHOULD IT BE CONSIDERED AN OFFER TO PURCHASE OR SELL DIGITAL ASSETS. DIGITAL ASSET HOLDINGS, INCLUDING STABLECOINS, INVOLVE A HIGH DEGREE OF RISK, CAN FLUCTUATE GREATLY, AND CAN EVEN BECOME WORTHLESS. YOU SHOULD CAREFULLY CONSIDER WHETHER TRADING OR HOLDING DIGITAL ASSETS IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION.

Disclaimer: This material should not be taken as the basis for making investment decisions, nor be construed as a recommendation to engage in investment transactions. Trading digital assets involve significant risk and can result in the loss of your invested capital. You should ensure that you fully understand the risk involved and take into consideration your level of experience, investment objectives and seek independent financial advice if necessary.

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