Introduction to ZKDEX

Introduction to ZKDEX

OKX ZKDEX is a decentralized exchange based on the Ethereum Layer 2 network, with self-custody of funds. It integrates ZK-Rollups technology to ensure that transactions are settled on the Layer 2 network system. OKX ZKDEX uses zero-knowledge proof technology to ensure user privacy and asset security. Your assets will be directly transferred from your wallet to the smart contract for custody without going through any centralized third party.

Introduction to Spot Trading

Spot trading refers to the transaction of one crypto asset against another. Taking the BTC/USDC currency pair as an example, BTC is the "trading currency" and USDC is the "pricing currency", which can be understood as buying BTC with USDC.

Making and Taking Orders in the Order Book

In any trading market, buyers and sellers will be matched with each other. As a trader, you either be maker or taker, or you may play both roles at some stage.

Trader who makes orders, also known as Maker. When the buying price is less than the selling price or the selling price is greater than the buying price, such an order will not be executed immediately, but will increase the depth of the market and is called a maker order.

Trader who takes orders, also known as Taker. When the buying price is greater than or equal to the selling price, or the selling price is less than or equal to the buying price, such orders will be immediately executed. This behavior of reducing market depth is called taker order.

The order book refers to a list of orders placed by buyers and sellers, sorted by price. Orders marked in green in the figure below represent buy orders, while red orders represent sell orders. The order book is very useful for traders as it helps to measure the interest of buyers and sellers at a specific price. An imbalance in the orders of buyers or sellers may indicate the potential direction of the market.