Order Types
When trading futures on our platform, it's essential to understand the different order types available to optimize your trading strategy. Our platform supports four primary order types:
Market Order
A Market Order is executed immediately at the best available market price. This type of order is used when traders prioritize speed over price control. However, due to market fluctuations, the execution price may vary slightly from the expected price. Also, a Slippage Limit protection mechanism can be applied to mitigate excessive slippage, preventing execution if the price deviation exceeds a predefined threshold.
Limit Order
A Limit Order allows traders to set a specific price for buying or selling an asset. The order will only be executed if the market reaches the specified price. However, there is no guarantee that the order will be filled if the price does not reach the set limit.
Fat Finger in Limit Order
Fat Finger protection helps prevent costly mistakes by blocking orders with abnormal price deviations. It automatically detects when a user enters a price far from the current market rate — often due to typos — and stops the order from being submitted, reducing the risk of accidental losses.
Stop-Limit Order
A Stop-Limit Order is a trade order that uses two prices: Stop Price (the price that triggers your order) and Limit Price (the price at which you're willing to execute the trade or a better price). The order will not appear in the order book until the stop price is reached. Once the stop price is reached, the order is converted into a limit order and executed at the specified limit price or better.
Take Profit / Stop Loss (TP/SL)
Take-profit (TP) and Stop-Loss (SL) orders automatically manage risk. A TP order ensures that a position is closed when a certain profit level is reached, while an SL order prevents further losses by closing a position when a predefined loss threshold is met. This type of order has many subtleties, which we have covered in more detail in a separate article. You can read more about it here.
Ways to Place an Order
Traders can place orders using three different methods, depending on their preferred way of managing capital:
Order by Quantity (Order by Qty)
This method allows traders to specify the exact number of contracts or units they wish to trade. It provides precision in position sizing. It is handy for experienced traders who prefer manual control over trade volume.
Order by Value (Order by Value)
With this method, traders enter the total value they want to invest in the trade. The system then calculates the corresponding quantity based on the market price, making it convenient for those focusing on capital allocation rather than contract units.
Order by Margin (Order by Margin)
This approach lets traders specify the margin they wish to use for a trade. The system determines the appropriate position size based on the available margin and leverage settings. This method benefits risk management and ensures traders do not over-leverage their accounts.
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