To help you better understand and use the various order functions in Tebbit contract trading, we provide the following detailed explanation of basic concepts and order types.
1. Basic Concepts
1.1 Last Traded Price
The most recent transaction price in the market.
1.2 Index Price
A price calculated based on the weighted spot prices from multiple exchanges, used as a market reference to reduce the impact of volatility on a single exchange.
1.3 Immediate Execution of High-Buy and Low-Sell Orders
If a buy order is placed above the current best ask price, or a sell order is placed below the current best bid price, the system will execute it immediately at the best available price. Actual execution may depend on available order book depth.
1.4 High-Sell and Low-Buy Orders Wait in the Order Book
If your sell price is higher than the current best bid, or your buy price is lower than the best ask, your order will remain in the order book until the market price reaches your set level, executed on a time-and-price priority basis.
1.5 Time and Price Priority
When prices are the same, orders submitted earlier take priority. For example, if A places a buy order at 5100, and both B and C place at 5200, B’s order will fill before C’s because of earlier submission.
1.6 Taker
A “taker” removes liquidity by executing against existing orders in the order book.
1.7 Maker
A “maker” adds liquidity by placing orders that rest in the order book, waiting to be matched by other traders.
2. Order Types
2.1 Limit Order
Users set a specific buy or sell price. Orders execute when the market reaches that price.
Limit Buy: If the last price is 13,000 and you set 12,900, it executes when the price drops to 12,900 or lower. If you set 13,100, the system executes immediately at the market price of 13,000.
Limit Sell: If the last price is 13,000 and you set 13,100, it executes when the price rises to 13,100 or higher. If you set 12,900, the system executes immediately at 13,000.
Note:
Tebbit limit orders follow the principle of buy low, sell high. If prices cross (high buy or low sell), they will execute immediately at market.
Execution depends on liquidity; limit orders may be partially filled or not executed.
2.2 Counterparty Price (Best Bid/Ask)
Placing orders at the best available price in the order book.
Buy at Counterparty Price: If best ask is 5050, your buy order executes at 5050. If quantity exceeds available volume, remaining will fill at higher asks.
Sell at Counterparty Price: If best bid is 5250, your sell order executes at 5250. If quantity exceeds available volume, remaining fills at lower bids.
2.3 Market Order
Orders execute immediately at the best available price, suitable for fast execution.
Market Open: If BTC trades at 13,000, buying 200 contracts executes immediately around 13,000.
Market Close (Close All): If holding 200 contracts at 10,000, selecting market close liquidates them quickly around 10,000.
2.4 Trigger Orders (Conditional Orders)
Trigger orders execute only when a preset condition is met. They can be limit or market type.
Conditional Limit: Example: BTC at 5000, you set trigger 4950, limit 4900. Once 4950 is reached, a 4900 order is placed.
Conditional Market: Example: You set trigger at 4800 to sell. Once 4800 is reached, the system executes a market sell at best available price.
Notes:
Trigger limit orders follow the same logic as limit orders.
For long: if order price > latest price → execute at latest price.
For short: if order price < latest price → execute at latest price.
Features of Trigger Orders:
Requires setting trigger price and execution price (for limit).
Margin not reserved until triggered.
Useful for automated strategies such as stop-loss or take-profit.
3. Summary
Tebbit provides multiple order types to suit different strategies. Users can choose based on market conditions and personal preferences to achieve optimal trading outcomes.