Conditional Order
A trading order that only executes when specified conditions are met, enabling automated trading strategies based on price, time, or other market conditions.
Conditional orders execute only when conditions met. Price above $50? Then sell. Time reaches 3pm? Then buy. Time-weighted average price matches target? Execute. Conditional orders enable automated strategies without constant monitoring. Traditional finance has stop-loss orders (sell if drops below price), stop-gain orders (sell if rises above). DeFi enabling more complex conditional orders. Example: "If ETH/USDC price > 2000, then swap 10 ETH to USDC". Conditional orders improve UX and enable sophisticated strategies. More DeFi protocols adding conditional order support.
Conditional Order Types
Different conditions:
Price Triggers: Execute when price reaches level. Stop-loss (below price), stop-gain (above price).
Time Triggers: Execute at specific time or after delay.
Technical Indicators: Execute when indicator (RSI, MACD) reaches level.
Oracle Triggers: Execute when oracle reports condition.
Composite Conditions: Combine multiple conditions with AND/OR logic.
Account Balance: Execute when balance reaches threshold.
Conditional orders enable flexible automation.
Implementation Approaches
How protocols enable:
Smart Contract Orders: User-submitted smart contracts that execute on conditions.
Keeper Networks: Keepers monitor conditions, execute orders when triggered (ChainLink Automation, Gelato).
Intent System: Users specify intent, solvers execute when conditions met.
DEX Native: Native conditional orders in DEX smart contracts.
Different implementations have different UX/costs.
Conditional Order Examples
Real use cases:
Stop Loss: "If ETH drops below $1500, sell all ETH". Protects against losses.
Take Profit: "If ETH rises above $2500, sell 50% of ETH". Lock in gains.
Rebalancing: "If portfolio weight of BTC drops below 40%, buy BTC to rebalance".
Dollar Cost Averaging: "Buy 100 USDC of ETH every week".
Arbitrage: "If ETH/USDC price on DEX-A > price on DEX-B by 2%, buy DEX-B, sell DEX-A".
Conditional orders enable many strategies.
Costs and Trade-offs
Considerations:
Keeper Fees: Keepers executing orders charge fees.
Gas Costs: On-chain execution requires gas.
Latency: Checking conditions adds latency vs immediate execution.
Missed Conditions: If oracle fails or keeper offline, condition might not execute.
Complexity: Complex conditions hard to verify and secure.
Costs must be justified by strategy value.
Career Opportunities
Conditional orders create roles:
Protocol Designers designing order mechanisms earn $130,000-$320,000+.
Keeper Operators running keepers earn $50,000-$150,000+ (variable).
Smart Contract Engineers implementing orders earn $120,000-$300,000+.
Automation Specialists building strategies earn $100,000-$260,000+.
Best Practices
Using conditional orders:
Test Conditions: Carefully test conditions before deployment.
Monitor Keepers: Ensure keepers executing reliably.
Cost Analysis: Ensure order fees don't exceed strategy value.
Redundancy: Use multiple keeper networks for reliability.
The Future of Conditional Orders
Evolution:
More Conditions: Support for complex conditions.
Cross-Chain: Conditional orders spanning chains.
Lower Costs: Cheaper automation as infrastructure improves.
Standardization: Industry standards for condition specifications.
Automate Trading Intelligently
Conditional orders enable automated trading without constant monitoring. Important for sophisticated strategies. If you're interested in trading or automation, explore trading careers at DeFi protocols. These roles focus on building trading infrastructure.
Find Conditional Order Jobs
Explore positions at companies working with Conditional Order technology
Browse open roles