BitMEX has implemented several different order types to assist with users’ unique trading and hedging strategies. This section outlines the various order types available with some examples. To see the fees charged for various order types, please click here.
A market order is an order to be executed immediately at current market prices. Traders use this order type when they have an urgent execution. Pay attention to the orderbook when selecting this order type, otherwise a large market order may “walk the book” and incur market-impact costs.
Limit orders are used to specify a maximum or minimum price the trader is willing to buy or sell at. Traders use this order type to minimise their trading cost, however they are sacrificing guaranteed execution as there is a chance the order may not be executed if it is placed deep out of the market.
Quantity = 10 Contracts Limit Price = $100 Direction = Buy
A bid of 10 contracts will be placed in the market with a Limit Price of $100.
A Stop Order is an order that does not enter the order book until the market reaches a certain Trigger Price. Traders use this type of order for two main strategies: 1. As a risk-management tool to limit losses on existing positions, and 2. As an automatic tool to enter the market at a desired entry point without manually waiting for the market to place the order.
BitMEX has three types of Stop Orders:
1. Stop Market Order - A Market Order will be placed when the market reaches the Trigger Price. 2. Stop Limit Order - A Limit Order will be placed when the market reaches the Trigger Price. 3. Trailing Stop Order - Similar to a Stop Market Order, whereby you specify the Trailing Value differential to the Trigger Price, and if triggered then a Market Order will be placed. Note, a positive Trail Value indicates a trailing Buy whilst a negative Trail Value indicates a trailing Sell.
For all Stop Orders, the Trigger Price can be specified as either the Last Price, Mark Price or the underling Index Price.
Stop Orders will show up in the Stops Tab, and will show you the Stop Price, Triggering Price and Status. There are three distinct Status events that are shown during the execution of a Stop Order:
1. Untriggered - The Trigger Price has not reached a level to trigger the Stop order. 2. Triggered - The Trigger Price has been reached but no order has been filled. 3. Filled - The Stop Order has been triggered and the order has been filled.
Users may cancel Stop Orders by clicking the cancel button. Please see the screenshot below to demonstrate above.
Stop Limit Order Example
Quantity = 10 Contracts Stop Price = $100 Limit Price = $90 Trigger = Mark Price Direction = Buy
In this example, the user has selected a Stop Limit Buy Order with the Mark Price set as the Trigger Price. If the Mark Price hits $100 then a Limit Order will be placed for 10 contracts at the Limit Price of $90. If they selected the Stop Market Order type, then they do not need to input a Limit Price.
Trailing Stop Order Example
Quantity = 10 Contracts Trail Value = $5 Trigger = Mark Price Direction = Buy (since the Trail Value is positive)
Once the user places this order type, a buy Market Order of 10 contracts will only be placed when the Mark Price rises more than the Trail Value of $5 here. However, if the Mark Price falls, then this order type will chase it and will only execute if the Mark Price rises by the Trail Value of $5 from wherever it drops to.
This section will introduce users to various order functions they can use on top of the existing order types above.
A Hidden Order is a Limit Order that is not visible on the public orderbook. Users can access it via the Limit Order or Stop Limit Order selection via checking the “Hidden” box. Traders use this order type when they don’t want to inform the market of their trading intentions.
Hidden Box Checked
Quantity = 10 Contract Limit Price = $100 Hidden Box = Checked Direction = Buy
A buy Limit Order for 10 contracts with a Limit Price of $100 will be submitted to the market and will not be visible to other traders. It will be executed as per a normal Limit Order based on time / price priority.
An Iceberg Order is a Hidden Order where a part of the order is displayed on the public orderbook. Since savvy traders are able to identify Hidden Orders, some traders prefer to use this order type in an attempt to be indistinguishable from traders continously refilling their order. You can access this order type by selecting either the Limit or Stop Limit Order and then checking the “Hidden” box and inputting a quantity to display.
Hidden Box Checked,
Quantity = 10 Contracts Limit Price = $100 Hidden Box = Checked Display Quantity = 1 Contract Direction = Buy
A buy Limit Order for 10 contracts with a Limit Price of $100 will be submitted to the market. Only a bid for 1 contract will be visiable to other traders. If someone submits a sell Order for 3 contracts at $100 then 3 contracts will be executed from this order. After that, another bid for 1 contract will appear at $100 to other traders. As such, there will now be 7 contracts left remaining, with 1 only visible.
Post Only Orders are Limit Orders that are only accepted if they do not immediately execute. That is, Post Only Orders never take liquidity. Market makers use Post Only Orders in order to only submit passive orders so as to earn the Maker rebate. This order type can be accessed from the Limit Order or Stop Limit Order selection by checking the “Post-Only” box.
Post-Only Box Checked
Quantity = 10 Contracts Limit Price = $102 Post-Only Box = Checked Direction = Buy Best Ask = $101
If the Post-Only box was not checked in this example, then this order would execute in the market against the Best Ask of $101 and the order would pay the Taker fee. Given the Post-Only box is checked, this order will not execute and be cancelled. Only if the Best Ask was higher than $102 will this order be placed in the market.
Close On Trigger is an additional order type specification that can be added to most of the above stop orders. It can be utilised by checking the “Close On Trigger” box. If executed it will cancel any other existing standing orders you may have in that particular contract. If this order adds to an existing position then it will not execute, the purpose is to reduce the current position size. Traders use this order type in case of market reversals.
Close On Trigger Box Checked
If a user has 3 existing buy Limit Orders in the market, and places a Stop Limit Sell Order with the “Close On Trigger” box checked, then if that Stop Order executes it will also cancel the 3 existing buy Limit Orders.