Types of Order on Binance Futures

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Currently, Binance Futures supports 11 types of order:

1. Limit Order

2. Market Order

3. Stop-Limit Order

4. Stop Market order

5. Trailing Stop Order

6. Post Only Order

7. Limit TP/SL Order (Strategy Order)

8. Reverse Order

9. Scaled Order

10. Conditional Order

11. TWAP
 

1. Limit Order

A limit order lets you place an order to buy or sell at a specific price or better.

• For a buy limit order, the order will be filled only if the market price matches or falls below your limit price.
• For a sell limit order, the order will be filled only if the market price matches or rises above your limit price.

Note: A limit order does not guarantee execution.

Buy Example:

Current BNB Price: 238.33 USDT (Last).

You place a Limit Buy Order:

• Price: 235.00 USDT (below market).
• Size: 0.5 BNB.

Outcome: Your order will buy 0.5 BNB only if the price drops to 235.00 USDT or lower.

Sell Example:

You hold BNB at 238.33 USDT.

You place a Limit Sell Order:

• Price: 240.00 USDT (above market).
• Size: 0.5 BNB.

Outcome: Your order will sell 0.5 BNB only if the price rises to 240.00 USDT or higher.

2. Market Order

A Market Order is executed immediately at the best available price on the order book. It matches with existing limit orders from traders to fulfill your order quickly. 

Please note: Because market orders take the best available prices, slippage may occur meaning the execution price could be different from what you expect, especially in volatile markets or with large order sizes.

Buy Example:

Place a Market Buy Order for 1 BNB.

Execution: Fills immediately at best available prices (e.g., 1 BNB at ~238.40 USDT with slippage).

Sell Example:

You hold 1 BNB.

Place a Market Sell Order.

Execution: The order sells immediately at the current best bid price, for example, approximately 238.30 USDT per BNB.

3. Stop Limit Order

A stop limit order is a conditional order over a set timeframe once a specified stop price is reached. After the stop price is triggered, the system places a limit order to buy or sell at the limit price or a better price.

Note: The Limit orders follow a price priority rule.

• When multiple Stop Limit orders are placed, a newly activated order may override a previously activated one due to this price priority.

Buy Example (Stop-Limit Buy):

• Current BNB: 238.63 USDT.
• Set Stop Price: 245.00 USDT, Limit Price: 246.00 USDT.

Outcome: If the market  price rises and  hits 245.00 USDT, a limit buy order will be placed at 246.00 USDT or better.

Sell Example (Stop-Limit Sell):

• You hold BNB at 238.63 USDT.
• Set Stop Price: 230.00 USDT, Limit Price: 229.00 USDT.

Outcome: If the market  price falls to 230.00 USDT, a limit sell order will be placed at 229.00 USDT or better.

4. Stop Market Order

A stop market order functions similarly to a Stop Limit Order in that it uses a shop price to trigger execution. However, unlike a Stop Limit Order, once the stop is reached, it triggers a market order instead of a limit order executing immediately at the best available price.

Buy Example (Stop Market Buy):

• Set Stop Price: 245.00 USDT.

Outcome: When the market price reaches 245.00 USDT, a market buy order is triggered, executing immediately at the best available price.

Sell Example (Stop Market Sell):

• You hold BNB at 238.33 USDT.
• Set Stop Price: 230.00 USDT.

Outcome: When the market price drops to 230.00 USDT, a market see order is triggered, executing immediately at the best available price.

5. Trailing Stop Order

A trailing stop order allows traders to set a stop order that follows the market price at a predefined percentage distance, known as the Callback Rate. This helps lock in profits by keeping the trade open and allowing it to benefit as long as the price moves in a favorable direction.

Important: The trailing stop price only moves in the direction of a favorable price movement and does not move back if the price reverses. When the price moves against the trade by the specified callback rate, the order executes at the market price.

Callback Rate: The percentage distance between the current market price and the stop price.

Buy Example (Trailing Stop Buy): 

The trader expects the price to drop first, then rebound upwards.

• Set Callback Rate to 2%

Outcome: If price drops and rebounds by 2% upwards from lowest point (stop price), a market buy is triggered.

Purpose: To buy once the price shows signs of recovering after a dip

Sell Example (Trailing Stop Sell): 

The trader expects the price to rise first, then decline.

• Set Callback Rate to 3% (below market price).

Outcome: If price rises and then falls by 3% from the peak price (stop price), a market sell order is triggered.

Purpose: To automatically lock in profits when the  price reverses after rising.

6. Post Only Order

A Post Only Order is designated to add liquidity to the order book by ensuring your order will not execute immediately upon placement. Instead, it will be placed as a maker, meaning it sits on the order book waiting to be matched by a taker order.

Note: If your Post Only order would immediately match with an existic order (becoming a taker), It will be canceled to avoid immediate execution.

Buy Example:

You place a Post Only Limit Buy at 238.17 USDT (below the best ask price).

Outcome: The order is added to the order book, providing liquidity and does not fill immediately.

Sell Example:

You place a Post Only Limit Sell Order at 239.00 USDT.

Outcome: The order remains on the order book until matched by a buyer.

7. Limit TP/SL Order (Strategy Order)

When you open a Futures position, you can enable Take Profit (TP) and Stop Loss (SL) orders by checking the [TP/SL] option. This allows you to automatically close your position when the price reaches specified levels. Depending on your trading strategy, you can choose whether these orders are triggered based on the "Last Price" or the "Mark Price".

Buy Example:

• Entry price at 500 USDT.
• Limit TP: 550 USDT (take profit, buy to close).
• SL Market: 480 USDT (stop-loss buy, market buy to close).

Sell Example:

• Entry price at 500 USDT.
• Limit TP: 450 USDT (take profit, sell to close).
• SL Market: 520 USDT (stop-loss, market sell to close).

8. Reverse Order

A reverse order simultaneously closes an existing open position and opens a new position of the same size in the opposite direction. This order type is executed through market orders. 

Reverse orders enable you to quickly adjust your market exposure by effectively “reversing” your current position.

Buy Example (Short to Long):

• You are currently short at 300 USDT.
• You place a Reverse Buy order at 290 USDT

Outcome: This order closes your short position and immediately opens a long position of equal size.

Sell Example (Long to Short):

• You are currently long at 300 USDT.
• You place a Reverse Sell order at 310 USDT.

Outcome: This order closes your long position and immediately opens a short position of equal size.

9. Scaled Order

A scaled order automatically creates multiple limit orders within a specified price range. This order type is especially useful for managing large order sizes by splitting the total quantity into several smaller sub orders. This approach helps reduce market impact and can achieve a better average execution price when opening or closing position.

Buy Example:

Place multiple buy limit order at different price levels:

Buy 0.5 BNB at 290 USDT,
Buy 0.5 BNB at 280 USDT, 
Buy 1 BNB at 270 USDT.

Sell Example:

Place multiple sell limit orders at different price levels:

Sell 0.5 BNB at 310 USDT, 
Sell 0.5 BNB at 320 USDT, 
Sell 1 BNB at 330 USDT.

10. Conditional Order

A Conditional order is a versatile order type in Binance Futures that allows traders to set a combination of a trigger price (based on either the Mark Price or Last Price) and an order type (Limit, Market or BBO) that executes once the trigger conditions is met.

Buy Example:

If BNB rises above 310 USDT, place a limit buy order at 309 USDT.

Sell Example:

If BNB price falls below 290 USDT, place market sell order immediately.

11. TWAP order

TWAP (Time-Weighted Average Price) is an algorithmic trading strategy that aims to achieve an average execution price close to the time-weighted average price over a user-specified period. 

Traders use TWAP to minimize the market impact of large orders by breaking them into smaller quantities and executing these gradually at regular time intervals. With TWAP, you can customize parameters such as trade direction (Buy/Sell), total order size, and total execution time. The system then automatically executes orders following your predefined strategy.

Buy Example:

Buy 10 BNB over 4 hours: Executes 0.42 BNB every 10 minutes.

Sell Example:

Sell 5 BNB over 2 hours: Executes 0.21 BNB every 5 minutes.

In addition, Futures traders can place orders by utilizing the following strategies with trading bots:

• TWAP (Time-Weighted Average Price) Orders
• Grid trading orders
  • Grid trading involves placing orders at incrementally increasing and decreasing prices above and below a set price level. It is effective in markets where prices fluctuate within a specific range, as it can automatically execute trades based on a predefined grid.
  • You can define the direction (Neutral, Long, or Short), grid type (Arithmetic mode or Geometric mode), price range, and grid count in the strategy. The system will automatically execute the orders based on the pre-defined strategy.
• Funding Rate Arbitrage Bot
  • Futures funding rate arbitrage allows traders to hedge their positions in the Futures market by taking an opposite position for the same trading pair in the Spot market. It involves a trader simultaneously opening both long and short positions in different markets to profit from the funding fees. This delta-neutral strategy allows traders to hedge their positions. Any loss incurred from the Futures market can be offset by the profit made in the Spot market and vice versa, whilst allowing traders to earn funding fees. The system will automatically initiate the transactions based on the direction of the 3-day cumulative funding rate after traders select the trading pair.

Disclaimer:

Trading futures and using advanced order types and trading boots involve substantial risks and may not be suitable for all investors. Past performance is not indicative of future results.
Please ensure you understand the risks and comply with the local regulations.Binance does not provide investment advice. For detailed information on risk disclosures and regulatory compliance, please refer to our official documents and terms of use.