Order Types: Conditional – BTCMEX
Derivatives trading has already won ground in the cryptocurrency market. Bitcoin Perpetual Contracts are attracting more and more professional quantitative traders as well as beginning crypto investors. To serve the needs of all users and provide the best trading experience BTCMEX — an innovative Perpetual Contracts trading platform — is currently offering various order types, which include Market, Limit and Conditional Orders.
Traders use orders — an instruction to buy or sell — to open or close a position on the exchange. Conditional Orders allow users to instruct the system to open or close a position at a pre-set trigger price. They give advantages of pursuing more complex trading strategies on the exchange.
A Conditional Order is a buy or sell order that is executed at a trigger price pre-set by a trader. The common use of the Conditional Orders is to take profit, limit loss or enter the market at a desired price. Conditional Orders and be applied to both Market and Limit Orders.
Conditional Market Orders are triggered by a specific pre-set price and executed immediately. A trader can choose the Last Traded Price, Mark Price or Index Price to be a trigger for the order, but it’s always executed at the Last Traded price.
Conditional Limit Orders are triggered by a pre-set price (Last Traded, Mark or Index), on which a Limit Order is placed. A Take Profit Order is filled if a trader sets a trigger price better than the price of the position. A Stop Loss Order is filled if a trigger price is worse than the price of the position. Find more about Take Profit and Stop Loss exit strategies on BTCMEX.
Positions closed with the Conditional orders can be filled fully or partially. Traders have three Time in Force options for Limit Orders: Good till Cancelled (GTC), Immediate or Cancel (IOC), and Fill or Kill (FOK).
- Good till Cancelled (GTC): The order is active until filled or cancelled by a trader.
- Immediate or Cancel (IOC): Any portion of the order that can not be filled immediately at the order price or better is cancelled.
- Fill or Kill (FOK): The entire order must be filled immediately at the order price or better, or it will be cancelled.
Traders can also expand their positions with Conditional Orders by getting more “same direction” contracts — “buy” when going Long and “sell” for going Short.
Conditional Orders are the important trading management strategies that allow users to enter or exit trading with an acceptable profit or prevent further loss without constantly monitoring the market.
Order: An instruction to buy or sell on an exchange.
Conditional Order: A buy or sell order that is executed at a trigger price pre-set by a trader.
Market Order: A buy or sell order that is executed immediately at the market price.
Limit Order: An order used to buy or sell at a specified price or better.
Take Profit: An automatic order to fully or partially close the position at a pre-set price with an acceptable profit.
Stop Loss: An automatic order to fully or partially close the position at a certain pre-set price better than the Liquidation Price to prevent further loss.
Good till Cancelled (GTC): A condition when the order is active until filled or cancelled by a trader.
Immediate or Cancel (IOC): A condition when a portion of the order that can not be filled immediately at the order price or better is cancelled.
Fill or Kill (FOK): A condition when the entire order must be filled immediately at the order price or better, or it will be cancelled.
Published at Sat, 16 Nov 2019 08:38:11 +0000
{flickr|100|campaign}
