When trading on the OKX platform, understanding various order types is crucial to executing effective trading strategies. This guide explores limit orders, market orders, take-profit/stop-loss (TP/SL), advanced limit orders, trailing stop orders, conditional orders, and iceberg orders (for futures trading). Each section includes clear definitions and practical examples to help you master these tools effortlessly.
1. Limit Order
Definition
A limit order allows you to set a specific price (maximum buy price or minimum sell price) and quantity for an asset. The order executes only when the market reaches your desired price, ensuring optimal execution within your specified range.
Use Case Example
- Scenario: BTC’s current market price is 65,000 USDT, but you want to buy at 62,000 USDT.
- Action: Place a limit buy order at 62,000 USDT.
- Outcome: If BTC drops to 62,000 USDT or lower, your order automatically fills at the best available price within your limit.
👉 Learn how to optimize limit orders
2. Market Order
Definition
A market order executes immediately at the current best available market price. While it guarantees speed, the final price may vary slightly due to market volatility.
Use Case Example
- Scenario: BTC’s last traded price is 62,000 USDT, and you want to buy instantly.
- Action: Submit a market order with your desired investment amount.
- Outcome: Your order fills near 62,000 USDT, but the exact price depends on real-time liquidity.
3. Take-Profit/Stop-Loss (TP/SL)
Definition
These orders automatically trigger when the market hits predefined profit-taking (TP) or loss-limiting (SL) levels, helping you lock in gains or mitigate risks.
Use Case Example
- Entry Price: 50,000 USDT per BTC.
- TP/SL Setup: Set TP at 55,000 USDT and SL at 45,000 USDT.
- Outcome: If BTC rises to 55,000 USDT, the system sells for profit; if it falls to 45,000 USDT, the position closes to limit losses.
4. Advanced Limit Order
Special Mechanisms
- Post Only: Ensures the order stays on the order book (no immediate execution), ideal for makers who benefit from lower fees.
- Fill-or-Kill (FOK): Requires full execution; otherwise, the entire order cancels.
- Immediate-or-Cancel (IOC): Partial fills are accepted, and unfilled portions cancel automatically.
5. Trailing Stop Order
Definition
A trailing stop dynamically adjusts the trigger price based on market movements. It’s ideal for volatile markets, allowing you to lock in profits or cap losses as prices fluctuate.
Use Case Example
- Setup: A 5% trailing stop for BTC.
- Outcome: If BTC rises from 60,000 USDT to 66,000 USDT, the stop price trails at 62,700 USDT (5% below peak). A subsequent 5% drop triggers a market sell.
👉 Master trailing stops for dynamic trading
6. Conditional Order
Definition
A conditional order executes only when the market reaches a predetermined trigger price. You preset both the activation price and the order details.
Use Case Example
- Trigger: 60,000 USDT for BTC.
- Action: Automatically place a limit buy at 59,500 USDT.
- Outcome: If BTC dips to 60,000 USDT, the system submits your 59,500 USDT buy order.
7. Iceberg Order (Futures Only)
Definition
An iceberg order splits large orders into smaller, discreet batches within a price range. This avoids market disruption and achieves better average pricing.
Use Case Example
- Range: Buy BTC between 60,000–64,000 USDT.
- Execution: The system places 9 smaller limit orders across this range.
- Result: Smoother entry with averaged pricing.
FAQs
Q1: Which order type guarantees price but not execution?
A: Limit orders ensure price control but may not fill if the market doesn’t reach your specified level.
Q2: How does a trailing stop protect profits?
A: It automatically adjusts the stop price upward as the market rises, securing gains if prices reverse.
Q3: Can I use TP/SL for futures trading?
A: Yes! TP/SL works for both spot and futures markets to manage risk.
Q4: What’s the advantage of Post Only orders?
A: They avoid taker fees and may qualify for maker fee rebates.
Q5: Are iceberg orders visible to others?
A: No—only the visible portion displays on the order book, keeping your full strategy private.
By leveraging these order types, you can trade more strategically on OKX. Whether you’re hedging risks, capturing trends, or executing complex entries, each tool offers unique advantages.
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