Market, Limit and Conditional Order

Market Order

A market order is an order to buy or sell a quantity of an asset at the prevailing prices. Market orders execute immediately, never rest on an order book, and only take liquidity from an order book. For safety, market orders can only execute within a market’s marketOrderExecutionPriceLimit percent of the index price.

Limit Order

A limit order is an order to buy or sell a quantity of an asset at or better than a specified price. Limit orders require specifying both a quantity in base terms and a price in quote terms. The matching engine only fills limit buy orders up to the specified quantity at or lower than the specified price; it fills limit sell orders up to the specified quantity at or higher than the specified price. Limit orders specified with a price that crosses the spread are immediately matched and take liquidity from an order book. Any portion of a limit order that cannot be matched immediately is added to the order book, subject to time in force rules and a market’s makerOrderMinimum. For safety, limit orders can only be priced within a market’s limitOrderExecutionPriceLimit percent of the index price.

Conditional Orders

Conditional orders are advanced orders that submit automatically when certain parameters, such as a trigger price, are satisfied.

Stop-Entry Orders

Trading a market breakout is possible thanks to stop-entry orders. On Kuma, traders can use a Conditional Market or Conditional Limit Order to set up a Stop Entry Order. For buy Stop Orders, the trigger price must be higher than the last traded price, while for sell stop orders, the trigger price must be lower than the last traded price.

Stop Loss Orders

An instruction to close your trade in order to reduce the loss is known as a stop loss order. It is precisely the same as a Stop-Entry Order but is utilized as an exit option by traders. By utilizing a conditional order, we have the option to close a position partially and can alter the stop loss order to either a stop loss market order or stop limit order.

Take Profit Orders

When a position makes a particular amount of profit, a take profit order closes the position. As previously indicated, Limit Orders can be used to do this. But how can one profit by using a market order to partially close an existing position? To do this, use a Conditional Market Order with a trigger price set to be better than the current last traded price along with the desired quantity of contracts. Take Profit Orders are frequently used as an exit strategy, however on Kuma platform they may also be configured as an advanced entry order.