Order Types in Contract Trading

In contract trading, you can choose different order types based on your desired execution price and timing. The way the order price is set differs by order type. Whether an order is filled and its actual execution price are also affected by market quotes and order book depth. The following introduces six order types.

 

A limit order allows you to specify the order price. Buy orders are filled only at the specified price or a lower price; sell orders are filled only at the specified price or a higher price. If there is temporarily no counterparty that meets the price conditions, the order may remain pending or may be only partially filled.

Example: The current lowest ask price of a contract is 10 USDT, and you submit a limit buy order at 9 USDT. Since there is currently no counterparty willing to sell at 9 USDT or lower, the order will not be filled immediately. It may be filled later if a sell order that meets the conditions appears.

 

A market order does not require you to specify an order price. After submission, the system attempts to match the order based on the counterparty quotes in the order book at that time, and the order can usually be filled quickly. If the quantity of orders at the best quote is insufficient, the order may be filled against orders at other price levels, so the actual execution price may differ from the price shown when the order was placed.

Example: After you submit a market buy order, the order will first attempt to match with orders at the current lowest ask price. If the quantity of orders at that price level is insufficient, the remaining portion may continue to match with orders at higher ask prices.

 

Counterparty price refers to the best quote in the opposite trading direction at the time the order is placed. For a buy order, it refers to the current lowest ask price; for a sell order, it refers to the current highest bid price. Counterparty price is a reference method for setting the order price and does not mean that the entire order will necessarily be filled at that price.

Example: The current highest bid price is 9 USDT and the lowest ask price is 10 USDT. If you select counterparty price to buy, the reference price is the lowest ask price of 10 USDT; if you select counterparty price to sell, the reference price is the highest bid price of 9 USDT.

 

Queue price refers to the best quote in the same trading direction at the time the order is placed. For a buy order, it refers to the current highest bid price; for a sell order, it refers to the current lowest ask price. After submission, the order may enter the order book and wait to be matched. Whether it is filled depends on subsequent market quotes, the quantity of counterparties, and its position in the queue.

Example: The current highest bid price is 9 USDT and the lowest ask price is 10 USDT. If you select queue price to buy, the reference price is the highest bid price of 9 USDT, and the order may wait with other buy orders at 9 USDT for a seller to fill them.

 

Price improvement refers to generating an order price based on a reference price according to the price improvement method set on the trading page. It is used to increase the likelihood of an order being filled, but does not mean that the order will definitely be filled, nor does it mean that you need to wait for the market price to rise before submitting the order. The specific reference price and price improvement range are subject to the settings on the actual trading page.

Example: You want to buy a contract. After selecting price improvement, the system generates a buy order price that is higher than the reference price according to the settings on the page. After the order is submitted, it is matched based on the sell orders in the order book at that time. The actual execution price may be lower than the order price, and the order may also be only partially filled due to insufficient order quantity.

 

A stop-limit order requires distinguishing between the trigger price and the limit order price: the system submits the limit order only when the specified market price reaches the trigger condition. Whether the order is filled after being triggered still depends on the limit order price and the market conditions at that time; triggering does not mean that the position will definitely be fully closed.

Example: You hold a long position and set a trigger price of 9 USDT and a sell limit order price of 8.9 USDT. When the trigger price specified by the platform reaches 9 USDT, the system submits a limit sell order at 8.9 USDT. If the price rapidly falls below 8.9 USDT and there are no buy orders that meet the conditions, the order may not be filled.

 

This article is provided for product explanation and educational reference only. It does not constitute investment, trading, financial, or legal advice, nor does it constitute an offer to buy or sell any digital assets. The examples in this article are for illustrative purposes only and do not take into account factors such as fees and funding fees. Actual results may differ.

Product features, trading rules, fees, and page information may be adjusted. If this article is inconsistent with the latest announcements from AstralX or the information displayed on the trading page, the applicable latest rules and actual page information shall prevail.

Contract trading of digital assets involves a high level of risk. Leverage amplifies the impact of price fluctuations on your margin, and you may lose all of your deposited margin. Before trading, fully understand the product rules and make prudent decisions based on your financial situation and risk tolerance.