Futures trading refers to the agreement between the buyer and the seller to trade a certain asset at a specified price and quantity at a certain time in the future, so as to obtain income. Futures trading is specifically divided into delivery futures trading and perpetual futures trading, where investors can buy open long to gain gains from rising crypto assets or sell open short to gain gains from falling crypto assets.
The following types of orders are available in futures trading:
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Limit Order: A limit order is an order where you want to buy or sell an asset at a specific price. A limit order will only be executed if the market price is at or below the price you specify.
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For example, suppose the market price is 10 and you want to buy a certain contract at 9, then you can place a limit buy order and wait for the market price to fall to 9. The system will automatically fill it for you at 9.
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Market Order: A market order is an order that is based on the current price of the market. When you submit a market order, you will buy or sell an asset at the current market price. A market order is usually the fastest type of order to be executed.
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For example, if you want to fill immediately at the market price, you can place a market order, at which point the trading system will immediately fill the order for you at the market's current best price.
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Opponent Order: A counterparty order is an order that is based on the price of the best counterparty order in the market. The counterparty is the opposite counterparty to you, i.e. if you are the seller, the counterparty is the buyer. Therefore, if you are submitting a buy order, the counterparty order will be based on the seller's lowest price. A counterparty order is usually a way to ensure that you get the best price.
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For example, assuming the market seller's lowest price is $10 and the buyer's highest price is $9, then $9.50 is the current counterparty price. You can place a counterparty order and wait for the market price to approach $9.50 and the system will automatically fill it for you.
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Queue Price Order: The queue price order is the price at which you are waiting in line to buy or sell an asset on the exchange. If you submit an order at a price higher or lower than the current market price, your order will be added to the corresponding price queue waiting to be executed. If the market price matches your queued price, then your order will be filled. The queue price is an order type usually used when market conditions are volatile.
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For example, if you believe the price of an asset will rise in the future, you may submit a lower queue price sell order to wait for the price to rise and sell the asset.
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Overpriced Order: An overpriced order is an order that you submit at a price higher than the current market price. When the market price reaches the price you submitted, your order will be executed. An overpriced order is usually used by traders who wish to buy an asset immediately.
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For example, if you wish to fill at a price after the market price has risen, you can place an overbought order and wait for the market price to rise to the price you set and the system will automatically fill it for you.
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Stop Limit Order: A stop limit order is a limit order where the price you set is lower than the current market price. When the market price reaches or falls below the price you set, your order will be executed. Stop-limit orders are usually used to limit an investor's losses in the event of a loss.
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For example, if you buy a certain asset, you can submit a stop-limit sell order that automatically sells when the market price falls to the price you set to limit your losses.