Xena Exchange supports following order types:
- Market orders
- Limit orders
- Stop orders
- Market-If-Touched (MIT) orders
- Stop loss orders
- Stop loss
- Trailing stop
- Attempt zero loss
- Take profit orders
Additionally, you can specify the time duration (also known as time in force) of your orders:
- GTC, Good Till Cancelled (default for limit orders)
- IOC, Immediate Or Cancel (default for market orders)
- FOK, Fill Or Kill
A market order is a request to buy or sell a currency at the current market price. Note that if the quantity of a market order is big enough, it may not be executed by the best price, as it will be matched against several limit sell orders on the order book. The resulting execution price is the weighted (by execution volume) average of the limit orders that were executed.
All market orders on Xena Exchange are Immediate Or Cancel. If there is not enough liquidity on the market to fill your order completely, it will be filled partially and the remaining portion of the order will be cancelled automatically. This is done to protect traders from unexpected price fluctuations when trading on low liquidity. You can specify Fill Or Kill instruction for your market orders.
A limit order is a request to buy or sell an asset at the certain or better price. If the other side of the order book doesn't contain orders with suitable price, the limit order will rest in the book until it is hit by some other market participant or cancelled without being filled.
By default, limit orders are Good Till Cancelled and remain active until completely filled or cancelled by the trader. You can specify Immediate Or Cancel or Fill Or Kill instructions for your limit orders.
Note that limit orders hold part of your balance:
- Limit sell orders blocks quantities in the base currency of the instrument. If your balance is 10 BTC, and you place a limit order to sell 3 BTC, the available balance will decrease to 7 BTC.
- Limit buy orders block the expected payment in the quote currency of the instrument. If your balance is 50,000 USDT, and you place a limit order to buy 3 BTC at 6,500, your available balance will decrease to (50,000 - 3 * 6,500) = 30,500 USDT.
The hold is released once the order is executed or cancelled.
Stop and Market-If-Touched (MIT) orders
Stop orders are pending orders that are automatically converted and executed as market orders once the last trade price on the market touches a stop price. Usually stop and MIT orders are used to close your position when the price reaches the certain level (stop loss and take profit orders).
- Stop buy order: placed above the last market price, fires when the last trade price becomes greater than or equal to the stop price of the order.
- Stop sell order: placed below the last market price, fires when the last trade price becomes less than or equal to the stop price of the order.
- MIT buy order: placed below the last market price, fires when the last trade price becomes less than or equal to the stop price of the order.
- MIT sell order: placed above the last market price, fires when the last trade price becomes greater than or equal to the stop price of the order.
Stop and MIT orders are executed as market orders when they are activated, and therefore are Immediate Or Cancel by default and can be made Fill Or Kill.
Stop Loss (SL) and Take Profit (TP) orders
Stop loss and take profit orders provide a convenient way to manage your risks and automate trading. Consider you bought 10 BTC for 6,200 USD and expect the price will move up to 6,700 USD per Bitcoin. You can place a Take Profit order with stop price 6,650. This will automatically sell your 10 BTC once the price reaches 6,650 USDT per BTC.
Stop loss orders automatically close positions if the price goes in an unfavourable direction. In the example, you could have put a stop loss with price 6,000 USD per BTC to avoid unexpected loss.
Keep in mind that neither stop loss nor take profit orders guarantee the execution price, as when they fire they are executed as market orders and are prone to slippage. Technically stop loss orders are stop orders and take profit orders are market-if-touched orders.
Trailing stop loss
Trailing stop loss order follows the market automatically to keep a given distance from the last market price. Consider you bought 10 BTC at 6,500 USDT per Bitcoin and set the trailing stop at 2%.
Initially its stop price will be equal to 6,500 * (100% - 2%) = 6,370. If the market goes up as you expected, the stop price of your order will follow it. For example, if the price has grown to 6,800, the stop price of the order will be 6,664. However, if the market turns and the price decreases, the stop price will not change, and once the market falls below 6,664, your Bitcoin will be sold automatically.
Unlike many other trading platforms, trailing stop loss orders are handled on the server side on Xena Exchange. This means you do not have to keep your trading terminal working all the time. Because this function requires certain resources on our servers, the number of active trailing stop loss orders (including attempt zero loss orders) is limited to 3 per client and 1 trading instrument.
Attempt zero loss
Attempt zero loss is a trailing stop that doesn't move beyond the position opening price. For instance, if you sent a market order with an attempt zero loss order, and the market has been executed at 6500, the stop price of your attempt zero loss order will move from its initial value up to 6500, but no further.
Sending SL and TP orders
Stop loss and Take profit orders can be sent only together with the main order (which can be of any type — market, limit or stop).
Once the main order gets filled, SL and TP orders linked to it will automatically reduce their quantity to the quantity of the fill. For example if you put an order to buy 10 BTC, and it is filled only for 7 BTC, linked SL and TP orders will be updated and their quantity will be 7 BTC. Subsequent fills of the main order do not affect SL and TP and do not create new SL and TP orders.
If any of SL and TP orders is filled (completely or partially), the second order is automatically cancelled.
Note that if you cancel the main order, SL and TP orders linked to it are not cancelled automatically. The same applies for cancelling SL or TP — other linked orders won't be affected.
Please keep in mind that in contrary to many trading platforms which are designed for CFD trading, stop loss and take profit orders in Xena are not linked to positions in any way. Changing positions does not lead to changing your SL and TP orders.
Time in force
Note that for stop orders the time in force takes effect only when the order is fired.
Good Till Cancelled orders
GTC orders remain active until completely filled or cancelled by the trader.
Immediate Or Cancel orders
IOC orders are executed immediately; the unfilled portion of the order is automatically cancelled.
Fill Or Kill orders
FOK orders are executed immediately; if the order cannot be filled completely, it is not filled at all and cancelled.