Xena Exchange supports the 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 of your orders:
- Good Till Canceled (GTC) (default for limit orders)
- Immediate or Cancel (IOC) (default for market orders)
- Fill or Kill (FOK)
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 too big, it may not be executed at the best price, as it will be matched against several limit sell-orders in 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 IOC. 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 canceled automatically. This is done to protect traders from unexpected price fluctuations when trading on low liquidity. You can manually change your market orders to FOK if you wish.
A limit order is a request to buy or sell an asset at the specified price (or a better price). If the other side of the order book doesn't contain orders with a suitable price, the limit order will remain in the book until it is hit by another market participant or canceled without being filled.
By default, limit orders are GTC and remain active until completely filled or canceled by the trader. You can specify IOC or FOK instructions for your limit orders.
Note that limit orders hold part of your balance:
- Limit sell-orders block 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 reaches the stop price. Usually, stop and MIT orders are used to close your position when the price reaches a 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 IOC by default but can also be set to FOK.
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. Say you bought 10 BTC for 6,200 USD and expect the price to rise to 6,700 USD per Bitcoin. You can place a take-profit order with a stop price of 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 above example, you could have implemented a stop loss at the price of 6,000 USD per BTC to avoid unexpected losses.
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 orders follow the market automatically to keep a given distance from the last market price. Say you bought 10 BTC at 6,500 USDT per Bitcoin and set the trailing stop at 2%.
Initially, the stop price will be 6,500 * (100% - 2%) (6,370). If the market goes up, the stop price of your order will follow. For example, if the price grows 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, at Xena Exchange, trailing stop-loss orders are handled on the server side. 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 three per client and one per trading instrument.
Attempt zero loss
Attempt zero-loss orders are trailing stop-loss orders that don't move beyond the position opening price. For instance, if you send a market order with an attempt zero-loss order and the market order is executed at 6,500, the stop price of your attempt zero-loss order will move from its initial value up to 6,500 but not further.
Sending SL and TP orders
Stop-loss and take-profit orders can be sent only with a main order (which can be of any type — market, limit, or stop).
Once the main order gets filled, the SL and TP orders linked to it will automatically reduce their quantity to the quantity of the fill. For example, if you put up an order to buy 10 BTC and it is filled for only 7 BTC, the linked SL and TP orders will be updated, and their quantity will be set to 7 BTC. Additional fills of the main order will not affect the SL and TP orders and will not create new SL and TP orders.
If any of the linked SL or TP orders are filled (completely or partially), the second order is automatically canceled.
Note that if you cancel the main order, the SL and TP orders linked to it are not canceled automatically. The same applies for canceling SL or TP — other linked orders aren’t affected.
Please keep in mind that contrary to many trading platforms 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 your SL and TP orders changing.
Time in force
Note that for stop orders, the time in force takes effect only when the order is fired.
Good Till Canceled orders
GTC orders remain active until completely filled or canceled by the trader.
Immediate Or Cancel orders
IOC orders are executed immediately; the unfilled portion of the order is automatically canceled.
Fill Or Kill orders
FOK orders are executed immediately; if the order cannot be filled completely, it is not filled at all and cancelled.