Bybit provides three different order types, Limit orders/market orders/conditional orders to meet the trading needs of traders.
|Order Types||Definition||Features||Executed Price||Advantage|
|Market Order||Traders are able to set their leverage and contracts quantity, but not the executed price||The order will be immediately filled at the best available price from the order book. However, though the execution of the order is guaranteed, the price at which the order will be executed at is not certain, since prices may change quickly.||Filled at the best available price from the order book||In fast-moving price conditions, traders may enter or exit the market immediately|
|Limit Order||Traders are able to set their leverage and contracts quantity and set the order price. When the last traded price reaches the set order limit price, the order will be executed||When the last traded price reached the set limit order price, the order will be executed||Limit Price or Best Available Price||Guarantee an executed limit price|
|Conditional Order||Once the preset trigger price meets the Last traded price, a conditional market order will be filled immediately, while a conditional limit order will be submitted to the order book and pending for execution.||When the last traded price reached the trigger price, a conditional market order will be immediately executed, while conditional limit order will be placed in the order book to await execution||Limit Price or Best Available Price||Conditional Orders are automatically submitted if specified criteria are met. Traders can specify a trigger price|
The market order will be executed at the best price available in the order book at the execution time. Traders do not need to set the price which allows the order to be immediately executed. Although market order guarantees the execution of the order, the execution price cannot be guaranteed because the market price may fluctuate rapidly. When traders need to enter or exit a volatile fast-moving price market, market orders are generally used.
Limit Order allows traders to set the order price, and the order will be filled at the order price or an executed price better than the order price.
For Buy Limit Orders, the order price must be set at a price lower than the last traded price, or it would be filled immediately as a market order (a 0.075% trading taker fee will be charged.) The same applies to Sell Limit Orders, but the order price must be higher than the last traded price.
When submitting a limit order, if there are no orders in the order book that are better than or equal to the order price to be matched, the limit order will enter the order book to await execution which in turn will increase the depth of the market. Hence, as a market maker, the trader will receive a 0.025% Maker fee rebate.
In addition, limit orders can also be used to partially or fully close a position. The advantage of a limit order is that it can guarantee the transaction at the specified price, but it also faces the risk of the order failing to be executed.
They are advanced orders that submit automatically once specified criteria are met, namely a trigger price.
Once the preset trigger price meets the Last traded price, a conditional market order will be filled immediately, while a conditional limit order will be submitted to the order book and pending for execution. This limit order will, then, only be filled once the last traded price reaches the preset order price.
Let’s look at an example to see how conditional orders can be used to mimic common order types.
For Stop-Entry Orders
By using Stop-Entry Orders, traders are able to trade a breakout on the market. On Bybit, traders can use a Conditional Market or Conditional Limit Order to set up a Stop Entry Order. For buy Stop Orders, the trigger price must be higher than the last traded price, while for sell stop orders, the trigger price must be lower than the last traded price.
For Stop Loss Orders
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. By using a conditional order, we can customize the stop loss order as a stop loss market order or stop limit order and have the flexibility to partially close a position.
For Take Profit Orders
A Take Profit Order is an order that closes a position once it reaches a certain level of profit. As mentioned earlier, it can be achieved through Limit Orders. But how to take profit by partially closing an existing position with a market order? To do this, use a Conditional Market Order with a trigger price set to be better than the current last traded price along with the desired quantity of contracts. Take Profit Orders are commonly used as an exit option, but can also be customized as an advanced entry order on Bybit’s platform.