Coincatch App
Trade smarter
FAQ
Introduction to Futures Order Types and Execution Mechanisms
Coincatch
2025-06-25 09:05
CoinCatch provides a wide array of order types to cater to diverse trading strategies and preferences. Understanding these options is key to executing trades efficiently, whether you’re a beginner or an advanced trader. Here’s a breakdown of the order types available on CoinCatch, complete with practical examples to clarify their use:
Market Orders
Market orders prioritize speed and certainty, executing immediately at the best available market price. This type of order is ideal when immediate execution is more important than the price.
-
Example: If Bitcoin (BTC) is trading at $90,000, placing a market buy order will purchase BTC at the best available price, such as $90,005 or $90,010, depending on market liquidity.
Limit Orders
Limit orders allow traders to set a specific price at which they wish to buy or sell an asset. The order is only executed when the market reaches the desired price or better.
-
Example: If BTC is currently at $90,000, placing a buy limit order at $89,500 ensures the order is only filled if the price drops to $89,500 or below.
Trailing Stop Orders
Trailing stop orders adjust dynamically with market fluctuations. The stop price follows the market price at a set distance, locking in profits as the price moves favorably.
-
Example: If BTC rises from $90,000 to $95,000, a trailing stop order set at $2,000 below the market price will adjust the stop price to $93,000. If the market reverses to $93,000, the order is executed, preserving gains.
Trigger Order:
When the market price reaches the trigger price, an order will be automatically placed according to the configured price and quantity.
Scaled Order:
A scaled order is a trading strategy where a large order is divided into smaller limit orders placed across a specified price range. This allows traders to execute large positions more gradually, potentially minimizing the impact on market prices and achieving a better average execution price.
Important notes:
-
After setting a stop order, your assets will NOT be frozen after you submit the stop order. Please ensure a sufficient account balance when the order is triggered.
-
Due to market volatility, insufficient funds, or system problems, your stop orders may not be triggered or executed. Please check order history for more details.
Order Execution Mechanisms
Advanced Limit:
-
Immediate or Cancel (IOC)
Any unfilled part will be canceled immediately, as soon as the order is submitted. On the one hand, if there is no transaction at the time of submission, all will be canceled. On the other hand, if the transaction is partially completed at the time of submission, the unfilled part will be canceled immediately.
-
Fill or Kill (FOK)
If the order cannot be fully executed on the market immediately, it will be canceled immediately.
-
Maker Only (MK)
A Maker Only order will not be immediately executed on the market after submission. Even when the order is filled by any existing orders, it will be canceled to ensure that it remains Maker Only.