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Q : Let's study Logical Mechanism of Perpetual Contracts today.
A : Sure let's get started.
Q : Here we go . Can you tell me about Contract Order Price Limit & Order Type ? A : Sure, let's get to know Contract Order Price Limit first
In order to avoid the malicious manipulation by a large number of funds, which may result in massive fluctuations of market price, Gate.io implements some price limits for contract orders:
The deviation between the order price and current mark price cannot exceed over 10%~50% (the maximum allowable deviation ratio of the specific order price refers to the Contract Details). If the order price exceeds the limit, then the order cannot be placed and need to reset the price.
Highest Order Price = Mark Price * ( 1 + 10%~50% )
Lowest Order Price = Mark Price * ( 1 - 10%~50% )
Take BTC-USD as an example, assuming the current mark price is 10,000 and the maximum allowable deviation ratio of this trading pair is shown as follows:
Highest Order Price = 10,000 * ( 1 + 50% ) = 15,000
Lowest Order Price = Mark Price * ( 1 - 50% ) = 5,000
TPSL is excluded from the Contract Order Price Limit, it applies to only opening and closing positions.
If an order is to reduce the position, then the order price cannot be higher than the bankruptcy price of the position.
If an order is to add to the position, then the order price cannot be higher than the forced liquidation price of the position.
If the order is filled at this price, it won't be forced to close out immediately. Generally, this situation occurs when the deviation between the intraday price and mark price is large. Users can reduce the leverage to trade at this price.
Q : Anything that users need to be note for Contract Order Price Limit ?
A : The price limit range is not conclusive and can be subjected to changes in the future. Please refer to the changes in the Contract Details.
Q : Thank you, how about Contract Order Types ?
A : Contract Order Types are divided into ordinary order, stop order, immediate transaction or cancelation, post-only order, reduce only order, close order, iceberg order, strategy order, where trigger order and trail order belong to strategy order.
Original Order :
Try taking orders first. If the order is not filled, then place the orders and wait for them to be filled.
Market Order :
Taking orders only without setting an order price, and fill the order at the market price. This type of order can be filled immediately and save time.
Immediate or Cancel Order :
Taking orders only without placing orders that are not completely filled. This kind of order is similar to the stop order, which prevents the funds to be occupied by placing orders and can not be used for other purposes.
Post-only Order :
Placing orders without taking. If an order is filled right after being placed, the order will not be filled and then be canceled. This type of order can be used to ensure that no taker transaction fee will be charged, and also prevent misoperation.
Reduce-only Order :
When an order is fulfilled, the positions will be reduced only. The order will be canceled if exceeds the existing positions, in order to ensure that your position will not be unintentionally increased.
Close Order :
One position can have only one close order at a time, with also the feature of reduce-only.
Iceberg Order :
Users can reduce the number of orders displayed on the OrderBook in the market. However, a certain amount of transaction fee (taker role) will be charged as a penalty when the order is filled between the actual number and the displayed numbers and no VIP discount can be applied. Iceberg orders can be hidden or displayed according to the user's preference.
Strategy order includes trigger order and stop order. Strategy order refers to the orders that order will be placed automatically with the preset order price once the market price reaches the predefined trigger price.
Trigger order is a kind of algorithm trading strategy by which users can predefine the order price, order number, and buy-or-sell, and the order will only be placed automatically with the preset order price once the market price reaches the predefined trigger price. Once triggered, the system will check the validity of the pending order and create an order to the pending list. Users can set up an opening or closing a position afterward.
2)Stop Order - Stop Loss and Taker profit Order:
Stop order is a trading strategy order including position stop order and trigger stop order. The order will be filled once reaches the predefined price.
Q : Is there anything else that users should be aware of ?
A : Well.
1)Trigger order includes trigger stop order, in which the trigger price can be set as the last traded price or mark price.
2)Failed order check: for example, insufficient account balance, exceeding risk limit, and close order conflicts will cause a fail order.
3)Close position order conflict: Since there can be only one position for the close order, that the position will be set as 'close on trigger' when there is an existing close order in the position. Under this condition, the order may fail to be placed.
4)If users want to create another strategy order while there is an existing close order, then the reduce-only or close on order attribute may not be applied. (Please note that if the position has been closed already, this kind of operation may lead to scale out on the opposite position.)