Bybit offers a diverse range of order types tailored to various trading markets. Understanding these order types and aligning them with your trading strategy is crucial before executing trades. This guide comprehensively explains Bybit's order types, categorized into basic and advanced, to help you make informed trading decisions.
Basic Order Types
Bybit's basic order types include market orders, limit orders, and conditional orders. These foundational orders serve as the building blocks for more complex strategies. Mastering these concepts is essential for leveraging Bybit's trading features effectively.
| Market Order | Limit Order | Conditional Order | |
|---|---|---|---|
| Order Parameters | 1. Quantity | 1. Quantity 2. Price | 1. Quantity 2. Trigger Price 3. Order Price (for limit variants) |
| Execution Logic | Fills immediately at the best available price. | 1. Fills at the specified price if reached. 2. Executes immediately if the price is better than the market. | Triggers a market/limit order once the condition is met. |
| Price Control | No control (slippage possible). | Set by trader. | Depends on order type (market or limit). |
| Pros | Instant execution. | 1. Price control. 2. Lower fees (maker). | Automated execution at predefined conditions. |
| Cons | 1. Slippage. 2. Higher fees (taker). | No execution guarantee. | Complexity in setup. |
1. Market Orders
Market orders execute immediately at the current best available price, ideal for quick entries or exits. However, they incur taker fees and may experience slippage during high volatility.
Key Notes
- Best for speed over price precision.
- Use in high-liquidity markets to minimize slippage.
2. Limit Orders
Limit orders allow price control by specifying execution parameters. If the market reaches your price, the order fills as a maker order (lower fees). If the price is better than the market, it executes immediately as a taker order.
Example
- Placing a buy limit order below the current price queues it on the order book.
- Placing a sell limit order above the current price does the same.
3. Conditional Orders
These orders trigger only when specific conditions (e.g., stop-loss or take-profit levels) are met. Types include:
- Stop-Market: Becomes a market order upon trigger.
- Stop-Limit: Becomes a limit order upon trigger.
Use Cases
- Automated entry/exit strategies.
- Risk management (e.g., stop-loss).
Advanced Order Types
Bybit’s advanced orders cater to sophisticated strategies and risk management.
1. Take-Profit/Stop-Loss (TP/SL)
- TP: Closes positions at a profit target.
- SL: Limits losses by auto-liquidating positions.
2. Iceberg Orders
Large orders split into smaller hidden quantities to minimize market impact.
3. Post-Only Orders
Ensures orders stay on the order book (maker-only), avoiding taker fees.
4. Time-in-Force Options
- GTC: Good until canceled.
- IOC: Immediate or cancel.
- FOK: Fill or kill.
5. Trailing Stop Orders
Dynamically adjusts stop prices to lock in profits while following market trends.
👉 Optimize your trailing stops
6. TWAP Strategy
Executes orders evenly over time to avoid large market impacts.
7. OCO (One-Cancels-the-Other)
Links two conditional orders; if one executes, the other cancels.
8. Reduce-Only Orders
Prevents position size increases, useful for risk management.
9. Trigger Close Orders
Auto-liquidates positions when trigger prices are hit.
FAQs
Q: What’s the difference between maker and taker fees?
A: Maker fees are lower for adding liquidity (limit orders); taker fees apply for removing liquidity (market orders).
Q: How do I avoid slippage?
A: Use limit orders in high-liquidity markets or iceberg orders for large trades.
Q: Can I automate all my trades?
A: Yes, via conditional orders, OCO, or TWAP strategies.
Conclusion
Understanding Bybit’s order types empowers traders to execute strategies with precision, whether scalping with market orders or hedging with OCOs. Start with basic orders, then explore advanced tools to optimize your trading performance.
For more details, explore Bybit’s official guides.