Huobi DM (Huobi Futures) Contract Order Types Explanation
Being the digital asset derivatives trading platform under Huobi Group, Huobi DM (Huobi Futures) provides various order types for its users. This article will generally help you to get familiar with these order types by introducing their meanings and showing examples.
- Limit Order:
Limit order is an order to buy or to sell an order at a specific price or better. Users can set the buy /sell price for pending orders. The order will be executed only when the market price reaches the set price, which means a buy limit order can only be executed at the limit price or lower and a sell limit order can only be executed at the limit price or higher.
2. Advanced Limit Order
Post-Only order is an order to help users place maker orders only. Post-Only orders will only be accepted if they are not immediately executed. If the match system filled the Post-Only order, the order will be cancelled.
Post-Only orders never take liquidity from the market. User use Post-only orders to submit passive orders so as to enjoy maker fee rate (which is lower than taker fee rate).
An Immediate or Cancel (IOC) order requires all or part of the order to be executed immediately, and any unfilled parts of the order will be cancelled.
There are two reasons to use it. First, IOC order helps to avoid filling a large order at an array of prices. Besides, IOC order helps traders to minimize the risk of forgetting to cancel the order manually.
A Fill or Kill (FOK) order requires all orders to be filled in its entirety immediately; otherwise, the entire order will be cancelled. No partial fulfillments are allowed.
The purpose of a Fill or Kill (FOK) order is to ensure the order is entered at a desired price, since a large order might take long to complete and there might be significant price change during the period.
3. Trigger Order
Trigger order is a pre-set order, that users place ahead with a trigger price, order price (input at will or choose from BBO, optimal 5, optimal 10 or optimal 20) and order amount. Once the latest market price reached the trigger price, the pre-set order will be executed at the pre-set amount and order price.
With this type of order, users don’t need to keep an eye on the market all the time and are able to manage profit and losses easily.
· Stop loss / Take profit order
Stop loss / Take profit order is a kind of trigger orders that helps users to close orders in a desired way when there occurs high market volatility.
For instance, a user has 100 BTC long positions with average open price of 4,000 USD. He thinks there will be a large drop after breaking the key support 3,900 USD. In order to stop losses, the user wants to close positions at price of 3,890 USD via stop loss. He sets a stop loss order of 3,900 USD (trigger price), and plan to sell the 100 lots (contracts amount) of contracts to close long at 3,890 USD (order price).
4. Other Order Types
· Flash Close
Flash close helps users to close positions as fast as possible to avoid the influence of high market volatility. If there are positions left not closing, the unfilled parts will convert to limit order automatically.
The close prices of flash close are predictable, avoiding the losses caused by unfilled orders when market moves violently.
About Huobi DM (Huobi Futures)
Huobi DM is the digital asset derivatives trading platform under Huobi Group. It was launched in 2018 with the aim of providing the most secure, professional and efficient service and now has been one of the leading crypto derivatives platforms according to daily volume.
Currently Huobi DM offers 9 kinds of delivery futures: BTC, ETH, EOS, LTC, XRP, TRX, BSV, TRX and ETC, with expiry of weekly, bi-weekly and quarterly periods. Users can flexibly choose 1 multiple, 5 multiples, 10 multiples or 20 multiples leverages.
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