Bybit offers a diverse range of order types designed to cater to various trading strategies across different markets. Understanding these order types is essential for aligning them with your trading objectives. This guide provides a detailed breakdown of Bybit's order types, categorized into basic and advanced options, to help you make informed trading decisions.
Basic Order Types
Bybit's foundational order types include Market Orders, Limit Orders, and Conditional Orders. These serve as the building blocks for more complex trading strategies.
| Order Type | Key Features | Execution Logic |
|---|---|---|
| Market Order | - Instant execution at best available price - Higher fees (taker) | Filled immediately upon placement |
| Limit Order | - Price-controlled execution - Lower fees (maker) if not filled immediately | Executed only when market reaches specified price |
| Conditional Order | - Trigger-based execution - Automates trade entries/exits | Activates when preset conditions (e.g., trigger price) are met |
1. Market Order
A Market Order ensures immediate execution at the current best available price. While it guarantees speed, it may incur slippage during volatile markets. Market Orders incur taker fees since they remove liquidity from the order book.
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Pros:
- Instant execution
- Ideal for time-sensitive trades
Cons:
- No control over execution price
- Higher fees
2. Limit Order
Limit Orders allow traders to set a specific execution price. If the market reaches this price, the order is filled. Limit Orders can be maker orders (if placed passively) or taker orders (if filled immediately).
Scenarios:
- Maker Order: Added to the order book, earning maker fees.
- Taker Order: Filled immediately if the limit price is more favorable than the market price.
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Pros:
- Price control
- Lower fees for maker orders
Cons:
- No execution guarantee
3. Conditional Order
Conditional Orders automate trading by triggering actions (e.g., Market or Limit Orders) when specific conditions (e.g., trigger price) are met. Common uses include:
- Stop-Entry Orders: For breakout strategies.
- Take Profit/Stop Loss (TP/SL): To secure profits or limit losses.
Reference Prices:
- Last Traded Price
- Mark Price
- Index Price
Pros:
- Automated trading
- Flexible trigger conditions
Cons:
- Dependent on market liquidity
Advanced Order Types
Bybit's advanced orders enhance strategic trading with features like risk management and liquidity optimization.
1. Take Profit/Stop Loss (TP/SL) Orders
Automatically close positions at predefined profit or loss levels. Available in both Spot and Derivatives markets.
Key Differences:
- Spot: TP/SL executes as a Market Order.
- Derivatives: More granular control (e.g., partial closes).
2. Iceberg Order
Splits large orders into smaller, discreet chunks to minimize market impact. Ideal for institutional traders.
Use Case:
- Masking large trade intentions
3. Post-Only Order
Ensures Limit Orders remain on the order book as maker orders. Cancels if immediate execution would occur.
Benefit:
- Guarantees maker fee rebates
4. Time in Force (TIF) Selections
Customize order duration:
| TIF Type | Description |
|---|---|
| GTC | Good 'Til Canceled – remains active until manually canceled |
| IOC | Immediate or Cancel – fills partially or cancels immediately |
| FOK | Fill or Kill – executes entirely or not at all |
5. Trailing Stop Order
Dynamically adjusts stop price to lock in profits while allowing for upside potential.
Example:
- Set a 5% trailing stop to protect gains during uptrends.
6. TWAP Strategy
Executes large orders evenly over time to avoid price impact.
Best For:
- Algorithmic trading
7. One-Cancels-the-Other (OCO) Order
Links two Conditional Orders; triggering one cancels the other.
Use Case:
- Simultaneously set TP and SL levels
8. Reduce-Only Order
Ensures orders only reduce (not increase) position size.
Benefit:
- Prevents accidental over-leveraging
9. Close on Trigger
Automatically closes positions when a trigger price is hit.
Differs from TP/SL:
- Uses Conditional Order logic
10. Scaled Order
Splits large orders into incremental Limit Orders within a price range.
Advantage:
- Reduces market impact
11. Chase Limit Order
Dynamically adjusts Limit Order prices to match market movements.
Ideal For:
- Fast-moving markets
Conclusion
Mastering Bybit’s order types—from basic Market Orders to advanced TWAP strategies—empowers traders to execute precise, automated strategies tailored to market conditions.
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FAQ Section
1. What’s the difference between maker and taker fees?
- Maker fees are rebates for adding liquidity (e.g., passive Limit Orders).
- Taker fees are charged for removing liquidity (e.g., Market Orders).
2. How do I avoid slippage with Market Orders?
Use Limit Orders or Conditional Orders for price-controlled execution.
3. Can I set multiple TP/SL levels?
Yes, via OCO Orders or scaled TP/SL strategies.
4. What’s the benefit of Post-Only Orders?
They guarantee maker fee rebates by preventing immediate execution.
5. Are TWAP Orders available for retail traders?
Yes, but they’re commonly used by institutional traders.
6. How does a Trailing Stop protect profits?
It automatically adjusts the stop price upward as the market moves favorably.