What is BBO?
BBO (Best Bid and Offer) is a limit order type that uses the best available bid and ask prices from the order book.
On Toobit Futures, the BBO feature allows traders to quickly place limit orders aligned with key price levels in the order book—such as Bid 1, Bid 5, Ask 1, or Ask 5—increasing the likelihood of faster execution and more efficient price matching.
When a BBO order is placed, the system automatically sets the order price based on the selected level in the order book. No manual price input is required.
How do BBO orders work?
On Toobit, BBO orders are automatically priced at the selected order book level, improving execution speed and order placement efficiency.
The pricing rules are as follows:
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Counterparty 1: Buy orders: priced at the best ask. Sell orders: priced at the best bid.
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Same-side 1: Buy orders: priced at the best ask. Sell orders: priced at the best bid.
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Counterparty 5: Buy orders: priced at the 5th best ask. Sell orders: priced at the 5th best bid.
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Same-side 5: Buy orders: priced at the 5th best ask. Sell orders: priced at the 5th best bid.
BBO orders reference the selected order book level and do not require manual price input. This allows orders to remain aligned with current market prices and improves execution efficiency.
How is a BBO order different from other order types?
BBO orders automatically set the order price based on the selected order book level at the time of placement, rather than requiring a manually entered price. This mechanism combines the execution efficiency of market orders with the price control of limit orders.
1) BBO orders:
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Dynamic pricing: The order price is automatically set to the selected level in the order book (e.g., Bid 1, Bid 5, Ask 1, Ask 5).
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Partial fills and remaining orders: If the order is only partially filled due to limited market depth, the remaining portion will stay in the order book at the initial matched price. It will not automatically adjust to the next available price level.
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Automatic price referencing: No manual price input is required. The system references current order book prices to improve order placement efficiency.
2) Non-BBO limit orders:
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Fixed price execution: Users must manually set a limit price. Orders are executed only when the market reaches the specified price or better.
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No automatic adjustment: The order price does not update dynamically based on order book changes.
3) Market orders:
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Immediate execution: Orders are executed instantly at the current market price, without price control.
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Slippage risk: In volatile or low-liquidity markets, orders may be filled across multiple price levels, resulting in a less favorable average price than you expected.
4) What makes BBO unique:
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Balance between speed and price control: Compared to market orders, BBO helps reduce excessive slippage. Compared to standard limit orders, it stays more closely aligned with market conditions.
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Responsive to market movements: BBO orders quickly adapt to changes in the order book, making them suitable for high-frequency and short-term trading strategies.
How to use BBO?
Supported order type: BBO orders are currently only available for Futures limit orders.
Steps to place a BBO order:
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Select BBO under the limit order type.
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Choose a price level (e.g., Counterparty 1, Counterparty 5, Same-side 1, or Same-side 5).
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Click [Open Long] or [Open Short].
The system will automatically place your order based on the selected order book level.
Important notes:
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Price volatility: In fast-moving markets, order book prices may change rapidly, which can result in execution prices differing from expectations.
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Liquidity impact: In low-liquidity markets, bid-ask spreads may widen, increasing the deviation between quoted and executed prices.
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Slippage risk: Due to the latency between order placement and execution, slippage may occur, especially during periods of high volatility.
We're always here to help. If you have any questions or feedback about this feature, please don't hesitate to reach out to our team through our dedicated Support Center.
Thank you for your trust and support.
Toobit Team
2026-03-31
