Limit orders allow the trader to set a specific buying or selling price, and the order will be filled at the order price or at a price more favorable than the order price.
When a limit order is submitted, if there is no order of which price is more favorable than or equal to the order price available for matching in the order book, the limit order will enter the order book to be filled, increasing the market depth. After the order is filled, the trader will be charged according to the more favorable maker fee.
When a limit order is submitted, if an order of which price is more favorable than or equal to the order price is already available for matching in the order book, the limit order will be immediately filled at the current best available price. Because of the liquidity consumed during the order execution, a certain trading fee will be charged as the Taker fee expense.
In addition, limit orders can also be used to partially or fully close a take profit limit order. The advantage of a limit order is that it is guaranteed to be filled at the specified price, but there also exists a risk that the order will not be filled.
When using a limit order, the user can also switch the effective time type of the order according to their trading needs, and the default is GTC:
- GTC (Good ‘Til Canceled Order): This type of order will remain valid until it is fully filled or canceled.
- IOC (Immediate or Cancel Order): If this type of order cannot be filled immediately at the specified price, the unfilled part will be canceled.
- FOK (Fill or Kill Order): This type of order will be canceled immediately if all orders cannot be filled.
The market order will be filled at the best price available in the order book at the time. The order can be quickly filled without having the trader set the price. The market order guarantees the execution of orders but not the execution price, as it may fluctuate depending on market conditions. Market orders are typically used when a trader needs to make a quick entry to capture a market trend.
Trigger Limit Order
If the trigger price is set, when the benchmark price (market price, index price, fair price) selected by the user reaches the trigger price, it will be triggered, and a limit order will be placed at the order price and quantity set by the user.
Stop Market Order
If the trigger price is set, when the benchmark price (market price, index price, fair price) selected by the user reaches the trigger price, it will be triggered, and a market order will be placed with the quantity set by the user.
The user's funds or positions will not be locked when setting the trigger. The trigger may fail due to high market volatility, price restrictions, position limits, insufficient collateral assets, insufficient closeable volume, futures in non-trading status, system issues, etc. A successful trigger limit order is the same as a normal limit order, and it may not be executed. Unexecuted limit orders will be displayed in active orders.
Trailing Stop Order
A trailing stop order is a strategy order for tracking market prices, and its trigger price may change with latest market fluctuations.
Trigger price calculation:
Sell, Actual Trigger Price = Market's Historically Highest Price - Trail Variance (Price Gap), Or Market's Historically Highest Price * (1 - Trail Variance %)
Buy, Actual Trigger Price = Market's Historically Lowest Price + Trail Variance, Or Market's Historically Lowest Price * (1 + Trail Variance %)
Trailing orders allow users to select an activation price for the order, and the system will start calculating the trigger price only after the order is activated.
Identification for Trailing Stop Order
Trail variance: The trail variance is the main condition for calculating the actual trigger price. The actual trigger price will be calculated based on the highest/lowest price of the specified price type after the order activation and the trail variance.
Quantity: The number of orders placed.
Price type: You can select the last transaction price, fair price or index price as the criteria to activate and trigger trailing orders.
Activation price: Activation price is the activation condition of a trailing order. When the price of the specified price type reaches or exceeds the activation price, the order will be activated. The system will only start calculating the actual trigger price upon activation. If the activation price is not defined, the order will be activated upon placement.
Case 1 (Sell the rip): The user wants to sell BTC without selecting the activation price (i.e. activate as soon as the order is placed) and the last transaction price is 30,000 USDT.
Then, one may set the parameters as follows.
[Trail Variance - Price Gap] 2,000 USDT
[Quantity] 1 BTC
[Price Type] Last Transaction Price
In the event where the BTC price keeps increasing to the highest point of 40,000 USDT after the order is placed, and then retraces to 38,000 USDT, reaching the retracement condition (40,000 USDT - 2,000 USDT = 38,000 USDT), the system decides for the user to sell at the market price at 38,000 USDT.
Case 2 (Buy the dip): The user wants to buy BTC and the last transaction price is currently 40,000 USDT.
Then one may set the parameters as follows.
[Trail Variance - Ratio] 5%
[Activation Price] 30,000 USDT
[Quantity] 1 BTC
[Price Type] Last Transaction Price
In the event where the BTC price keeps falling to 30,000 USDT after the order is placed, the trailing is activated, it then falls all the way to 20,000 USDT and bounces back to 20,000 USDT * (1 + 5%) = 21,000 USDT, reaching the retracement condition (5%), the system decides for the user to buy at the market price at 21,000 USDT.
Post-only orders will not be filled in the market immediately, which ensures that the user is always a maker and enjoys the yield of the trading fee as a liquidity provider; at the same time, if the order is filled with an existing order, then the order will be canceled immediately.
TP/SL refers to the pre-set trigger price (take profit price or stop loss price) and trigger price type. When the last price of the specified trigger price type reaches the pre-set trigger price, the system will place a close market order according to the pre-set quantity in order to take profit or stop loss. Currently, there are two ways to place a stop loss order:
- Set TP/SL when opening a position: This means to set TP/SL in advance for a position that is about to be opened. When the user places an order to open a position, they can click to set a TP/SL order at the same time. When the open position order is filled (partially or fully), the system will immediately place a TP/SL order with the trigger price and trigger price type pre-set by the user. (This can be viewed in open orders under TP/SL.)
- Set TP/SL when holding a position: Users can set a TP/SL order for a specified position when holding a position. After the setting is complete, when the last price of the specified trigger price type meets the trigger condition, the system will place a close market order according to the quantity set in advance.