Different order types allow you to execute trades based on your strategy by defining trigger conditions, execution methods, and pricing. Understanding how each order type works can help you trade more efficiently and manage risk effectively on Toobit.
What is an order?
An order is an instruction to buy or sell an asset. In trading, orders are generally categorized as maker or taker:
• Maker: Orders that are placed in the order book and not filled immediately. They provide liquidity to the market (e.g., limit orders) and typically incur lower fees.
• Taker: Orders that are matched immediately against existing orders in the order book (e.g., market orders). They consume liquidity and usually incur higher fees.
Order types：
1. Market order
A market order is executed immediately at the best available price. It matches against existing orders in the order book to ensure fast execution.
Note: The final execution price may differ from the expected price due to slippage, especially during high market volatility or when placing large orders.
• Example — Buy (Open long):
Place a market buy order for 1 BTC.
The order is filled immediately at the best available price (e.g., around 78,000 USDT; slippage may occur), opening a long position.
• Example — Sell (Open short):
Place a market sell order for 1 BTC.
The order is filled immediately at the current best bid price (e.g., around 77,980 USDT), opening a short position.
2. Limit order
A Limit order allows you to place an order at a specified price or better.
A limit buy order is executed when the market price reaches or falls below your specified price.
A limit sell order is executed when the market price reaches or rises above your specified price.
Note: Limit orders are not guaranteed to be filled.
• Example — Buy:
Current ETH futures price: 2,500 USDT
You place a limit buy order:
Price: 2,300 USDT
Amount: 0.5 ETH
The order will only be filled if the market price drops to 2,300 USDT or lower.
• Example — Sell:
Current ETH futures price: 2,500 USDT
You place a limit sell order:
Price: 2,700 USDT
Amount: 0.5 ETH
Result: The order will only be filled if the market price rises to 2,700 USDT or higher.
3. Trigger order
A trigger order is an algorithmic trading strategy that allows you to set a predefined trigger price and an order price. When the market price reaches the trigger price, the system will automatically place the order. Trigger orders are commonly used for take profit, stop loss, or trend-based entries. They do not reserve margins or positions before being triggered.
• Limit trigger order: Places a limit order once triggered.
• Market trigger order: Places a market order once triggered.
• Example: If the trigger price is set at 76,000 USDT:
A market trigger order will be executed immediately once triggered.
A limit trigger order will be placed and executed once the specified price is reached.
4. Post-only order
A post-only order is an advanced type of limit order.
It ensures your order is added to the order book as a maker order only, meaning it will not match with any existing orders immediately. This guarantees that the transaction fee you will pay is the lower maker fee.
Key benefits:
• Always qualifies for maker fees.
• Avoids undesired losses. If your order would be filled immediately (e.g., priced better than the current market), it will be automatically canceled.
FAQs
1. What is the difference between a maker and a taker？
Makers provide liquidity by placing orders that remain in the order book, while takers remove liquidity by executing orders immediately against existing orders.
2. When should I use a market order instead of a limit order?
Use a market order when you want to enter or exit a position quickly. Use a limit order when you want more control over the execution price.
3. Why was my market order filled at a different price than expected?
This is due to slippage, which occurs when market prices move quickly. It is more noticeable during high volatility or with large order sizes.
4. Why wasn't my limit order executed?
A limit order will only be executed when the market reaches your specified price or better. Otherwise, it will remain in the order book.
5. What is a trigger order used for?
A trigger order allows you to automate trade execution based on predefined conditions. They are commonly used for stop-loss, take-profit, and entry strategies.
6. How do post-only orders reduce trading fees?
Post-only orders ensure your order is placed as a maker order, allowing you to benefit from lower maker fees. If the order would execute immediately, it will be canceled.
Summary & Reminder
By choosing the appropriate order types, you can execute your trading strategies more effectively and improve efficiency when opening or closing positions.
Please note that perpetual futures trading involves high risk. Market volatility and liquidity changes may result in execution prices that differ from expectations. Trade responsibly based on your risk tolerance. For the latest rules and feature details, please refer to the official Toobit platform.
