Limit order: The user needs to specify the price and quantity of the order. The limit order specifies the highest price that users are willing to buy or the lowest price that they are willing to sell. After the user sets the limit price, the market will prioritize the transaction at a price that is favorable to the user. Limit orders can be used to open and close positions. The unfilled part is automatically converted into a pending order and waiting for to be filled.
Margin will be occupied for placing a limit order. Closing a limit order will occupy positions that is available to close.
Assume that the latest price of BTC0925 call options is 110 USDT. A user wants to open long at 100 USDT. When the price drops to less than or equal to 100 USDT, the order will be automatically filled; on the contrary, the latest BTC contract price is 110 USDT, and the user sets a buy price of 120 USDT to open a long position, the order will be filled immediately at the current latest price 110 USDT.
There are three types of limit order: “Post only”, IOC (Immediately or Cancel)” and “FOK (Fill or Kill)”.
Post only order: It will not be immediately traded in the market. If the order is immediately concluded with an existing order, the order will be cancelled to ensure that the user is always Maker.
IOC order: If all orders cannot be executed on the market immediately, the unsettled portion will be cancelled immediately.
FOK order: If all order cannot be completed, all of them will be cancelled immediately.
A user wants to trade options. The following is the order book for an option at a certain moment:
1.If the user wants to enjoy maker’s fee rate, he can select “Post Only” to place an order. If the sell price is 162 USDT, the order will not be immediately traded on the market, the order will be placed successfully; If the sell price is 160 USDT, because it will be immediately traded with the buy_1 price, the order will be cancelled;
2.If the user selects "IOC (Immediately or Cancel)", the sell price is 167 USDT, the quantity is conts, and the total number of all pending buy orders is 3000 conts. After all the pending buy orders are filled, there are 3000-2240=760 unfilled conts. Then there are 2240 conts are filled in total, and the remaining 760 conts will be cancelled immediately;
3.If the user selects "FOK (Fill or Kill)" to place an order, the sell price is 159 USDT, the quantity is 2000 conts. At present, the total number of all buy orders is only 1897 conts, which is not enough to make all the contracts filled, therefore this order will be cancelled; However, if the order amount is 1897 conts or less than 1897 conts, the order will be successfully filled.
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