TEX is a Decentralized Exchange. What makes TEX special is that the mechanism used for trading is inspired by the method used at The London Gold Fix. With this method, periodic ticks in an order book match operations at an emerging price, avoiding front-running and allowing fair price discovery even with low volume.
There are two types of orders in the exchange: limit orders and market maker orders.
A limit order assures you that you will buy or sell at the intended price or better.
Let's imagine there is a buy order for 1 BTC at USD 10,000 and a sell order for 1 BTC at 9,800 usd.
At the time of the tick, both orders will be collated and, as the purchase price of the buy order is higher than the selling price of the sell order, both orders will be processed. In this case, the price will be the one that benefits both parties. In other words, whoever buys would not spend more than the maximum that were willing to spend, nor will the one who sells receive less than the minimum that were expecting to obtain; the price will be the average between the two (in this example, 9,900 usd).
A marker maker order is a special type of limit order. When you enter a market maker order you specify a percentage difference with fair price. Fair price is obtained from an oracle or from the last tick in the cases an oracle is not available.
For example, suppose that the price of bitcoin is USD 10,000. You enter a market maker order to buy 10,000 DOC of RBTC and you specify minus 0.5% of price difference. Your limit order will be put at a price of USD 9,950 and will change its price with the price of bitcoin. If the price of BTC goes up or down the price of your order will be adjusted automatically to reflect bitcoin price minus 0.5%.
In the example above with the price of bitcoin being USD 10,000 you will buy bitcoins at USD 9,950 or better.
TEX is a decentralized exchange that allows you to place both limit orders and market maker orders to buy or sell tokens at an emerging price, avoiding front-running and allowing fair price discovery even with low volume.