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What's the mechanism for removing liquidity?

• deleted 2y ago
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• deleted 2y ago
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• itchyouch 2y ago
  Adding liquidity means to place an order that sits on the book while removing liquidity means to execute against an order that's already resting on the book.
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• cheonic730 2y ago
  > What's the mechanism for removing liquidity? Liquidity removal = market order Liquidity providing = limit order (not immediately executable)
  • usefulcat 2y ago
    The order type is a red herring (you can take liquidity with a limit order). The only difference between an order that removes liquidity and an order that adds liquidity is whether it executes upon arrival (removing liquidity) or rests on the order book on arrival (adding liquidity).