Keywords: limit order, market order, plan order, stop profit and stop loss
What is a limit order?
Limit order allows the trader to set an order price, and the order will be filled at the order price or a better price.
When submitting a limit order, if there are already orders in the order book that are better than or equal to the order price for matching, the limit order will be executed immediately at the best price. When a limit order is filled, a 0.045% taker fee will be charged since it consumes the liquidity in the market.
However, if there is no order in the transaction queue that is better than or equal to the order price to be matched, the limit order will enter the order book and wait for the match. After the order is filled, the trader will gain a 0.02% maker fee as it increases the market depth.
Limit order is subject to price restrictions. The order price cannot exceed 10% of the average mark price in the past 5 minutes (Different trading pairs may vary, please refer to the pop up notification). For orders in process, if the order price deviates from the mark price by 10% for more than 7 days, the order will be automatically cancelled.
What is a market order?
When placing a market order, traders do not need to set the price, and the order will be matched immediately at the best price. If the order is too large, it will be matched with multiple orders with different prices in the order book until all transactions are completed, which also causes Slippage.
Note：For risk control, there is a protection system to limit the fill price range of market order. When a market order is filled, its price is allowed to deviate by 2% from the mark price. The excess part of the order will be automatically cancelled by the system.
Market order guarantees the speed of the order, but not the price. In a volatile market, the depth is not enough, it may cause severe slippage.
When should I place a market order?
When traders need to chase the market and grasp all opportunities, they generally use market orders.
3. Trigger order
What is a trigger order?
Traders can pre-set a trigger price as the trigger condition, and when the mark price reaches the trigger price, the system will automatically execute the order. (Subsequently, we will support market price and index price as trigger conditions)
Will a trigger order freeze the margin?
A trigger order will not freeze the margin before it is triggered, which means that traders can set any trigger order according to their needs. However, when a trigger order is triggered, but the account margin is insufficient, the order will be rejected by the system.
4.Take profit and stop loss
What is take profit and stop loss?
Take profit or Stop loss is a pre-set close price of a position. When the mark price reaches the pre-set price, the position will be closed automatically at market price.
How to set take profit and stop loss?
Example 1: Before you place a limit order or a market order, you can set a take profit or stop loss price before submitting it. When the order is filled, the corresponding take-profit and stop-loss conditions will be applied.
Example 2: Set a take profit or stop loss price for the existing positions in the position list, and the corresponding take-profit and stop-loss conditions will be applied immediately.
Will take profit and stop loss freeze positions?
The take profit and stop loss setting applies to existing positions, so the corresponding positions will be frozen. You can modify the take profit price, stop loss price, and order quantity in the take profit and stop loss list to unfreeze.
BingX reserves the right in its sole discretion to amend or change or cancel this announcement at any time and for any reasons without prior notice.
Trading digital assets and their derivatives is highly leveraged and risky and may result in partial or total loss of account funds. Before conducting spot/contract trading, investors must ensure that they understand the nature and rules of spot/contract trading, and decide whether to participate in spot/contract trading based on their investment experience, goals, financial status, and ability to bear risks.
BingX Operation Team