Conditional Orders are automatically submitted if specified criteria are met. Traders will need to specify a trigger price(TP) based on either the Last Traded Price or Index Price or Mark Price, to activate the orders. This is an advanced strategy that is more suitable for experienced traders.
Note: Conditional orders do not have any margin requirements until the trigger price has been triggered. What this means is that a trader can place any conditional orders successfully but if there is insufficient margin at the point of triggering, the system will automatically reject the order.
On Bybit, we offer two types of conditional orders, namely:
1) Conditional Limit Order
2) Conditional Market Order
Market Orders will be executed at the best available price when the Last/ Index / Mark price hits the pre-set trigger price.
We can also use conditional orders to mimic the below order types that are commonly used.
The appeal of using (Stop Orders) is that traders are able to trade a breakout on the market. On Bybit, trades can use conditional market or conditional limit order to set up a stop entry order. For buy stop orders, the trigger price must be better than the Last/ Index / Mark price and for sell stop orders the trigger price will be worse than the Last/ Index / Mark price.
2) Stop-Loss Order
A stop-loss order is an instruction to close your position to limit the loss. It is exactly the same as a stop entry order but is used as an exit option by traders. On Bybit, one-click stop loss provides a convenient choice for traders to close all existing position through a market order. By using conditional order, we can customize the stop-loss order as a stop loss limit order and giving us the flexibility to partially close a position. Note: To ensure the execution of your Stop-Loss order, please consider selecting the Close on the Trigger function.
3) Take-Profit Order
A Take-Profit Order can be achieved by using a conditional market order with a trigger price set at better than current Last/ Index / Mark price along with the desired quantity of contracts, allowing for partial closure of a position. Take profit orders are commonly used as an exit option, but it can also be customized as an advanced entry order on Bybit’s platform.