To help you better understand and use the various order functions in Tebbit contract trading, detailed explanations of basic concepts and various order types are provided below.
1. Basic Concepts
1.1 Last Price Refers to the most recent transaction price in the current market.
1.2 Index Price A price calculated based on the weighted average of spot prices from multiple exchanges, used as a market reference to reduce the impact of price fluctuations from a single exchange.
1.3 Immediate Execution (High Buy/Low Sell) When the buy price is higher than the current Ask 1 price, or the sell price is lower than the current Bid 1 price, the system will execute at the best market price immediately. However, actual execution may be affected by the quantity of counterparties.
1.4 Waiting for Execution (High Sell/Low Buy) When your order price is higher than the current Bid 1 (for sell orders) or lower than the current Ask 1 (for buy orders), the order needs to wait on the order book until the market price reaches your specified price. Execution follows the principles of time priority and price priority.
1.5 Time Priority, Price Priority In cases where prices are the same, orders submitted earlier will be executed first. For example, if A buys at 5100, while B and C buy at 5200, B will execute before C because B's order was submitted earlier.
1.6 Taker Also known as "aggressive order." Refers to actively executing against orders already placed on the market. A Taker's order will immediately match existing orders on the order book.
1.7 Maker Also known as "passive order." Refers to the operation of placing an order on the market, where the Maker's order stays on the order book waiting for other users' orders to match it.
2. Detailed Order Explanation
2.1 Limit Order Users set a specific buy or sell price. A limit order will execute when the market price reaches the set price. For example: • Limit Buy: If the last price is 13000 and the user sets 12900, it executes when the price drops to 12900 or lower. Conversely, if the market is at 13000 and the user sets 13100, the system follows the "buy low" principle and executes immediately at the market price of 13000. • Limit Sell: If the last price is 13000 and the user sets 13100, it executes when the price rises to 13100 or higher. Conversely, if the market is at 13000 and the user sets 12900, the system follows the "sell high" principle and executes immediately at the market price of 13000. Note: 1. Contract limit orders follow the logic of buying low and selling high. If a high buy or low sell situation occurs, it executes immediately at market price. 2. Even if the price is reached, the order may not execute. It depends entirely on market conditions and liquidity. In some cases, your limit order may only be partially filled or not filled at all.
2.2 Counterparty Price Counterparty price refers to placing an order at the best available buy or sell price in the market. For example: • Buy at Counterparty Price: If Ask 1 is 5050, your buy order will execute at 5050. If the volume is larger than Ask 1, it continues with Ask 2, Ask 3, etc. • Sell at Counterparty Price: If Bid 1 is 5250, your sell order will execute at 5250. If the volume is larger than Bid 1, it continues with Bid 2, Bid 3, etc.
2.3 Market Order
Users trade at the best current market price, suitable for fast execution. For example: • Market Open: If the BTC price is 13000 and you buy 200 contracts, it executes at the best price with an average around 13000. • Market Close All: If holding 200 BTC contracts and the price is 10000, choosing "Market Close All" will close all positions as quickly as possible, with an average price around 10000.
2.4 Plan Order (Trigger Order) Plan order is a condition-triggered order that executes only after the market price reaches a preset condition. Plan orders are divided into Plan Limit Orders and Plan Market Orders:
• Plan Limit Order: When the trigger price is reached, a limit order enters the book at the user's set price. For example, if a user holds a long position, current price is 5000, trigger is 4950, limit is 4900; when price hits 4950, a buy order at 4900 is placed. • Plan Market Order: When the trigger price is reached, it executes immediately as a market order at the best available price. For example, if a user wants to sell when price drops to 4800, trigger is 4800, select market order; when price hits 4800, it executes instantly. Note: The logic of Plan Limit Orders matches Limit Orders. After triggering, if a long order price is higher than the last price, it executes at the last price; for short orders, if lower than the last price, it executes at the last price.
Plan Order Characteristics:
• Users set trigger and execution prices (for limit), and must ensure sufficient margin. • Margin is not occupied before triggering; it is frozen only after the order is triggered. • Suitable for automated trading when specific price conditions are met, such as pre-set entry or take-profit/stop-loss strategies.
3. Summary
Tebbit provides multiple order types to meet different needs. Users can choose the best strategy based on market conditions and preferences.