Understanding the variety of order types available on trading platforms is essential for building effective and adaptive trading strategies. Bybit offers a comprehensive suite of order options—ranging from basic to advanced—to suit different market conditions and trader objectives. Whether you're entering a position, securing profits, or managing risk, knowing how each order type functions can significantly enhance your trading efficiency.
This guide breaks down Bybit’s order types into two main categories: basic orders and advanced orders, providing clear explanations to help traders make informed decisions aligned with their goals.
Basic Order Types
Before diving into complex strategies, it's crucial to master the foundational order types: Market Orders, Limit Orders, and Conditional Orders. These serve as the building blocks for more sophisticated trading techniques.
Market Order
A market order executes immediately at the best available price in the market. It ensures fast entry or exit, making it ideal when speed is prioritized over price precision.
- Execution Logic: Filled instantly at the current bid (for sells) or ask (for buys).
- Price: Best available market price at the time of execution.
- Advantages: Immediate execution, high probability of fill.
- Disadvantages: No price control; susceptible to slippage during high volatility. Also incurs a higher taker fee since it removes liquidity from the order book.
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Limit Order
With a limit order, traders specify the exact price at which they are willing to buy or sell. This provides full control over execution price but does not guarantee a fill.
Execution Logic:
- If the market reaches your set price, the order executes.
- If placed at a worse price than the current market (e.g., a buy above ask), it may execute immediately as a taker.
- Price: Set by the trader; fills at that price or better.
Advantages:
- Price control.
- Potential eligibility for lower maker fees if added to the order book.
Disadvantages:
- Risk of non-execution if price isn’t reached.
- May become a taker order if mispriced.
Tip: Use “Post-Only” mode to ensure your limit order only acts as a maker—more on this in advanced orders.
Conditional Order
A conditional order triggers a market or limit order when a predefined trigger price is met. It enables automated trading based on specific market movements.
- Trigger Sources: Last Traded Price (LTP), Mark Price, or Index Price.
Types:
- Conditional Market Order: Becomes a market order upon trigger.
- Conditional Limit Order: Becomes a limit order upon trigger.
Use Cases:
- Stop-Loss (SL): Limits losses by closing a position when price moves unfavorably.
- Take-Profit (TP): Secures gains when price hits a target.
- Entry Orders: Enter breakout trades when price surpasses key levels (e.g., buy-stop or sell-stop).
While powerful, conditional orders depend on market liquidity and trigger accuracy—especially during fast-moving markets.
Frequently Asked Questions
Q: What’s the difference between a stop-loss and a conditional order?
A: A stop-loss is a type of conditional order. All stop-loss and take-profit orders on Bybit are executed via conditional logic—once the trigger price is hit, an associated market or limit order is activated.
Q: Why did my limit order execute immediately?
A: If your limit price is better than the current market price (e.g., selling below bid or buying above ask), it will execute instantly as a taker order. To avoid this, use Post-Only mode.
Q: Can I use multiple triggers for one conditional order?
A: No—each conditional order uses one trigger condition (price level + source). However, you can place multiple conditional orders simultaneously using tools like OCO.
Advanced Order Types
Once comfortable with basic orders, traders can leverage advanced tools to refine execution, manage risk, and automate complex strategies.
Take-Profit / Stop-Loss Orders
Integrated directly into position management, these orders allow automatic profit-taking or loss-limiting.
- Found in both spot and derivatives trading.
- Can be set as market or limit orders upon trigger.
- Helps prevent emotional decision-making and improves discipline.
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Iceberg Order
An iceberg order splits a large order into smaller visible portions, hiding the full size from the market.
- Reduces market impact and avoids signaling large intentions.
- Ideal for institutional traders or those placing big orders without influencing price.
- Automatically replenishes small chunks until the full quantity is filled.
Post-Only Order
This setting ensures your limit order will only be placed on the order book—not executed immediately.
- Prevents accidental taker status and higher fees.
- If matching would occur instantly, the system cancels the order instead of filling it.
- Best for traders aiming to consistently earn maker rebates.
Time-in-Force (TIF): GTC, IOC, FOK
These settings define how long an order remains active:
- GTC (Good-Til-Canceled): Stays on the book until filled or manually canceled.
- IOC (Immediate-or-Cancel): Executes what it can immediately; cancels remainder.
- FOK (Fill-or-Kill): Requires full execution instantly—or cancels entirely.
Choose based on urgency and precision needs.
Trailing Stop Order
A dynamic stop-loss that follows price movement by a fixed distance or percentage.
- Locks in profits as price moves favorably.
- Only adjusts upward (for longs) or downward (for shorts)—never backward.
- Executes when price reverses to hit the trailing threshold.
Perfect for trend-following strategies.
TWAP Order Strategy
Time-Weighted Average Price (TWAP) breaks a large order into equal parts executed over a set period.
- Minimizes slippage and visibility.
- Achieves an average entry/exit close to fair market value.
- Useful in volatile or illiquid markets.
One-Cancels-the-Other (OCO)
An OCO combines two conditional orders: when one executes, the other is automatically canceled.
- Example: Set a TP at $50,000 and SL at $45,000. If price hits $50k and TP triggers, SL is canceled.
- Enhances risk management and strategic flexibility.
Reduce-Only Order
A limit or conditional order that only reduces an existing position—never increases it.
- Prevents accidental position expansion.
- Essential for disciplined risk control in leveraged trading.
Close-on-Trigger Order
Automatically closes an entire position when a trigger price is reached.
- Similar to SL/TP but designed specifically for full-position closure.
- Can be linked with take-profit or stop-loss logic.
Scaled Order
Splits a large order across multiple price levels within a defined range.
- Buys low and sells high within a band.
- Uses algorithmic logic to place staggered limit orders.
- Ideal for range-bound markets.
Chase Order (Pegged Order)
A smart limit order that dynamically adjusts to the best bid/ask up to a maximum deviation.
- Ensures aggressive execution while staying within limits.
- Reduces latency and missed opportunities in fast markets.
Core Keywords
The following keywords reflect central themes throughout this article:limit order, market order, conditional order, stop-loss, take-profit, trailing stop, post-only, time-in-force
These terms are naturally integrated to align with common search queries while maintaining readability and value.
Final Thoughts
From quick market entries with market orders to precision-based entries using limit orders, and automation via conditional and advanced orders, mastering these tools empowers traders to act confidently in any market environment. Understanding not just how each order works—but when to use it—is key to developing robust, adaptive strategies.
Whether you're managing risk with trailing stops or optimizing execution with TWAP strategies, combining technical knowledge with disciplined planning leads to better outcomes. As you refine your approach, consider integrating real-time analytics and smart execution tools to stay ahead.
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