Bitfinex offers several order types via the Order Form box to give you the tools necessary to execute your trading strategy successfully.
- Limit (Order Book)
- Trailing Stop
- Fill or Kill
- Immediate or Cancel
- Scaled (video)
Additionally, you can match your orders types with the available order options:
- One Cancels Other (OCO) (video)
- Post-Only Limit
- Time in force (TIF)
A limit order is one of the most basic order types. It allows the traders to specify an amount and price they are able and willing to buy or sell.
Example: If the best ask price is 250 and I want to buy lower than that at 249, then I would place a limit buy order at 249. If a seller is willing to take my bid, my limit order will be matched and executed at 249.
Limit (Order Book)
A Limit (Order Book) is an order that can be executed by clicking at a price on the order book.
After you input the amount in the order form you can use the bid row to create a sell order and the ask row for a buy order.
To enable this order type click on the box found on the form, to confirm that you have understood the feature. By unclicking the same box you can disable the order type.
A market order is an order type that executes immediately against the best price available. A market sell will match the best available bids on the order book, while a market buy will match against the best available asks.
Market orders are often used when rapid execution is prioritized over the price at which the order executes. When placing this order, the trader prefers the trade to happen immediately at the current best prices available.
Please note that this order may lead to slippage.
A stop order is used to trigger a market sell when the market drops to your trigger price or used to trigger a market buy if the market rises to your trigger price. This is often used as a stop-loss order if the market is moving in an unfavourable direction. Stop orders will fully execute as a market order once the trigger price is reached.
Example: If the current market price is 250, the trader in a long position might want to sell if the price drops to 245 to avoid further losses. A stop sell at 245 will be used in this case.
Example: If the current market price is 250, the trader in a short position might want to buy if the price reaches 255 to avoid further losses. A stop buy at 255 will be used in this case.
A stop-limit order triggers a limit order. With a stop-limit, the trader sets a stop price at which the order is triggered and a limit price at which the order may be filled. Once the stop of a stop-limit order is triggered, the limit order is automatically placed.
Example: If a trader would like to buy once the market price reaches 250, but not pay more than 252, then a stop price of 250 and limit price of 252 will be specified at the same time using a stop-limit order. If the market price reaches 250, the order is triggered and will match the best available asks up to 252. If the market price moves to 252.01 or above, then the order may go partially unfilled due to the limit price.
A trailing stop order provides flexibility over a stop order by executing once the market goes against you by a defined price, called the price distance. A trailing stop order can be used to protect profit.
The stop price trails behind the most profitable bid/ask price reached by the amount specified as price distance. If the stop is triggered, a market order is placed.
Example: If the trader is in a long position and the current best bid price is 250 after a quick rise from 225, a trader can set a trailing stop sell with a price distance of 5. This will create a sell stop order at 245. If the best bid price continues to rise to 275, then the trailing stop rises accordingly, always staying 5 behind the highest best bid price (or stay above the lowest ask for a short position and a trailing stop buy); rising to 270 in this example.
Fill or Kill (FOK)
A "fill or kill" order is an order that must be filled immediately in its entirety, at a specific price or better, or it is cancelled.
Example: If the best BTC/USD ask price is 10,000 USD and there is 1 BTC being sold at this price. With a Fill or Kill buy order of 1 BTC at 10,000 USD, your order will be executed. If on the other hand you place a Fill or Kill buy order of 1.1 BTC at 10,000 USD, your order will be fully cancelled immediately and it will not execute at all.
Immediate or Cancel
An Immediate Or Cancel (IOC) order requires all or part of the order to be executed immediately, and any unfilled parts of the order are cancelled. Partial fills are accepted with this type of order, unlike a fill-or-kill order, which must be filled immediately in its entirety or be cancelled.
Example: If the best BTC/USD ask price is 10,000 USD and there is 1 BTC being sold at this price. With an Immediate or Cancel buy order of 1.1 BTC at 10,000 USD, your order will execute 1 BTC and cancel the remaining order of 0.1 BTC.
The scaled order tool is an algorithm designed to allow traders to spend less time entering orders and more time focusing on their strategy. The algorithm automatically creates multiple limit orders across a user-determined price range. This tool also provides control over the diversity and distribution of orders within the price range.
One Cancels Other (OCO)
The one cancels other order option allows you to place a pair of orders stipulating that if one order is executed fully or partially, then the other is automatically canceled. An OCO order places a stop order and a limit order. This option allows you to place both take profit and stop loss targets for your position at the same time while only consuming available balance for one order.
Example: If the market price is 250 and the trader wants a stop sell order at 245 and a limit sell order at 260, then an OCO order may be appropriate. If the market reaches 245, the stop order will trigger a market order and cancel the limit order at 260. If the market reaches 260 before 245, the limit order will execute and cancel the stop order at 245.
Note: If you manually cancel one of the OCO orders; i.e., the stop or the limit, you must also manually cancel the other one.
The hidden order option ensures an order does not appear in the order book; thus does not influence other market participants. See the fees page for the applicable fee.
The post-only limit order option ensures the limit order will be added to the order book and not match with a pre-existing order. If your order would cause a match with a pre-existing order, your post-only limit order will be canceled. This ensures that you will pay the maker fee and not the taker fee. Visit the fees page for more information.
The Reduce Only option allows you to set orders intended to only reduce a current position. You will not be able to execute more than you currently have in your position in the opposite direction, allowing you to trade without running the risk of over-exposing your assets.
Example: If you have a long position of 300 EOS/USD. If you place a limit sell order of 308 EOS, having the REDUCE-ONLY mark applied to the order will only allow you to execute 300 EOS, as that would be the maximum amount of units that can be traded without reversing the course of your position.
Time in Force (TIF) Order Option
The Time in Force option is available for Limit, Stop, Stop Limit, and Trailing Stop orders. This option provides users with the ability to direct the duration (date and time) an order can stay open.
The order will then stay open until it is either executed or expires at the specified time.