Execution model
Strategies
Spreadr executes a spread with one of two strategies, selected by the trade configuration:
| Strategy | Description |
|---|---|
| Maker-taker | Post a passive maker order on one venue; the instant it fills, fire a taker hedge on the other venue for the filled size. This earns the maker rebate / avoids taker fees on one leg, at the cost of waiting for the maker fill. The maker quote is continuously re-priced as the hedge leg moves. |
| Taker-taker | Fire both legs as taker orders simultaneously the moment the spread condition is met. This minimizes the time the position is exposed to leg risk, at the cost of paying taker fees on both sides. Preferred for fast-decaying basis dislocations. |
Order lifecycle
Every order Spreadr places moves through an explicit state machine, so that at any instant — including immediately after a crash — the exact status of each leg is recoverable from durable state rather than inferred. The states are:
| State | Meaning |
|---|---|
| Pending-New | Order signed and submitted; venue acknowledgement not yet received. |
| Received | Venue has acknowledged the order. |
| Open | Order is live and resting on the book. |
| Pending-Fill-Confirmation | A fill has been observed and is being durably confirmed before its hedge is released. |
| Filled | Order fully filled and confirmed. |
| Pending-Cancel / Canceled | Cancellation in flight / completed. |
| Rejected | Venue rejected the order. |
The Pending-Fill-Confirmation state is the linchpin of the fault-tolerance guarantee (Fault tolerance): a fill is durably recorded in this state before its hedge is sent, so no acknowledged fill can be lost to a crash.
Leg-risk handling and hedge retry
In maker-taker, the window between a maker fill and its taker hedge is the only moment the position carries directional risk. Spreadr minimizes and bounds that window:
- The hedge is released immediately on fill confirmation.
- If the hedge is rejected or the market has moved, Spreadr retries aggressively up to the user's slippage limit — the maximum adverse price it may accept to complete the hedge. Within that budget it keeps trying to flatten the exposure; it does not silently give up and leave a one-legged position.
- The maker quote on the still-open leg is continuously re-priced off the hedge leg's current price, so a partially-executed spread does not drift away from its target spread.
Chunked execution
Large target sizes are not sent as a single order. Spreadr splits them into chunks and executes them sequentially, re-checking margin between chunks (Risk framework). This bounds the size at risk in any single leg-crossing, adapts to available liquidity, and lets the trade stop cleanly the moment the spread condition stops holding.
Completion and cancellation
When the accumulated size reaches the target, Spreadr cancels any remaining resting orders on both venues and marks the spread complete. A user can amend, pause, or cancel a running spread at any time; on cancel, Spreadr cancels open orders on both legs and reconciles the resulting position against what the exchanges report.