Ethereum: Market Prices Out of Sync When Placing an Order via Node.js with ccxt
As a cryptocurrency trader, it is not uncommon to encounter issues with market prices out of sync. This can lead to incorrect trades and significant losses if left unchecked. In this article, we will explore the issue of market price out of sync on Ethereum markets by using a WebSocket server to receive price updates from the exchange.
The Problem: Out of Sync
When an order is placed on a cryptocurrency exchange like Binance or Huobi using the ccxt library for Node.js, the createMarketOrder function sends the order details (currency, amount) to the exchange’s API. The exchange then forwards this information to the WebSocket server that we have configured to receive price updates.
However, due to various reasons such as network latency, congestion, or even technical issues with the exchange’s infrastructure, the price received may not be accurate or up to date. This can cause our “createMarketOrder” function to place an order at a price that is then updated to a different price on the exchange’s blockchain.
A simple example
Let’s create a simple example using the ccxt library and Node.js to illustrate this issue.
const ccxt = require('ccxt').ethers;
// Create a WebSocket connection to the Ethereum exchange
const websocket = new ccxt.ethersocket({
url: "wss://api.binance.com/1/exchange/binance",
});
// Configure the WebSocket server to receive price updates
const server = (req, res) => {
// Listen for incoming WebSocket connections
websocket.on('connect', () => {
console.log('WebSocket connection established');
// Receive a message from the client with the order details
websocket.on('message', (message) => {
const { currency, amount } = JSON.parse(message);
// Create an order using the ccxt library
buyMarketOrder: async (currency, amount) => {
console.log(Order placed at ${amount} ${currency});
// Simulate a timeout to introduce desynchronization
wait for new promise((resolution) => setTimeout(resolution, 1000));
// Put update order details with latest price
const price = websocket.price(currency);
amount = price * amount; // Update order amount based on new price
// Create an order and place it on the exchange
console.log(Order placed at ${amount} ${currency});
}
});
});
};
// Start the WebSocket server
server.listen(3000, () => {
console.log('WebSocket server listening on port 3000');
});
The Problem
In this example, we created a simple “buyMarketOrder” function that simulates a one-second delay between receiving price updates and placing an order. During this time, the client may receive outdated prices from the exchange.
When we place an order at the simulated amount using the updated price, we are essentially creating a new order with a different amount than what was sent to us in the initial request.
Conclusion
To solve the desync issue, you need to make sure that your WebSocket server is receiving accurate and up-to-date prices from the exchange. Here are some recommendations:
- Use a reliable WebSocket library: Make sure that your WebSocket server is using a reliable and well-maintained library like “ccxt” instead of a less secure option.
- Implement persistent connections: Establish persistent and long-lived connections to the exchange’s WebSocket endpoint to minimize the impact of desync.
- Use real-time data feeds: Consider using real-time data feeds from the exchange or implementing an on-chain price update mechanism to reduce reliance on external APIs.