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Order Types
Learn about the different order types available on Margex: Limit, Market, Stop market, and Stop Loss/Take profit protection orders.
Margex offers the following order types:
- Limit
- Market
- Stop Market
- Stop Loss and Take Profit
Below is a breakdown of each order type.
Market orders is an instant-type order, which is executed immediately and filled at market (i.e. the first available market price). It is the default order type in the order placement module.
This type of order is used by traders when immediate market entry/exit is the main priority. When placing a market order, traders will need to choose the following order parameters:
- Order size (the full size of the order taking into account the selected leverage)
- Leverage
It is important to note that market orders (unlike limit orders), are filled at the first available market price, thus they can be subject to market slippage (the difference between expected price and actual fill price), based on the current supply/demand in the Orderbook.
A Limit order is a delayed-type order which is used to specify the highest/lowest price (i.e the limit price) at which a trader is willing to Buy or Sell an asset.
Traders generally utilize this type of order to improve the price at which they enter/exit the market. When placing a limit order, traders will need to choose the following parameters:
- Order size (the full size of the order taking into account the selected leverage)
- Limit price (the lowest/highest price at which the trader is willing to Buy/Sell)
- Leverage
It is important to note, that, limit orders (unlike market orders) do not guarantee execution as the market may not reach the limit price specified by the trader.
Once placed, all active unfilled Limit orders will be reflected in the Active Orders section of the Trade page, until executed or cancelled.
Note: When selecting a limit price:
- For Buy (long) Limit orders the limit price must be set LOWER than the current price
- For Short (sell) Limit orders the limit price must be set HIGHER than the current price
If attempting to sell/buy at a worse price than the current market price - the order will be immediately executed as a market order, as the current price is already more favourable
A Stop-Market order is a delayed order to Buy or Sell an asset once it reaches the price specified in this order (i.e the stop price).
While similar to limit orders, the Stop Market order type provides more flexibility when it comes to choosing the price at which to place a delayed order. When the price of an asset reaches the stop price, a Stop Market order will be executed as a market order, and filled at the first available market price.
Traders use this type of order for various trading strategies, the main being to automatically enter the market at a specified entry point without having to wait for the market to drop/rise to that level in order to manually place the order, and as a risk-management strategy to minimize losses on active trades.
When placing a Stop Market order, traders will need to choose the following parameters:
- Order size (the full size of the order taking into account the selected leverage)
- Stop price (the price level at which the order will be executed at market)
- Leverage
Once placed, all active unfilled Stop-market orders will be reflected in the Active Orders section of the Trade page, until executed or cancelled.
Stop Loss (SL) orders are used to minimize risks of liquidation and limit potential losses by automatically closing a position at market should the price of an asset reach the specified Stop Loss price.
Take Profit (T/P) orders are used to lock in profits by automatically closing a position should the price of an asset reach the Take Profit price.
These types of orders are highly recommended when trading as an additional risk-management tool, allowing traders to minimize risks of liquidation and potential losses, and to lock in profits automatically should the market reach the desired level.
Last modified 23d ago