Xena Exchange supports the following order types for trading Xena Listed Perpetuals:
- Market orders
- Limit orders
- Stop 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 an asset 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 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.
Limit orders may as well be used to implement various trading strategies. For example, if the price fluctuates inside some channel, you may put a limit buy order a bit higher than the support level and a limit sell order a bit lower than the resistance level. During the next price swing this set of orders will buy low and sell high, giving you profit:
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:
- 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.
Stop orders are executed as market orders when they are activated and therefore are IOC by default but can also be set to FOK.
Usually, stop orders are used as stop-loss orders, but here is an example of how a stop order may be used to open a position. Put a stop buy a bit above the resistance level. If the price breaks the level (which is a signal for beginning of an up trend), your order will be triggered and the position will open automatically:
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.
For example, it's worth setting a stop loss below a support level, as if the price breaks this level, it's likely to start a down trend. A stop loss will close the position automatically, not allowing to increase your loss uncontrollably:
Take profits are used to automatically close your position at a certain price, for example if you don't expect it to go higher than the certain level:
Trailing stop loss
Trailing stop-loss orders follow the market automatically to keep a given distance from the last market price. Say you opened a position at price 6,500 and set the trailing stop at 2%.
Initially, the stop price will be (6,500 - 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 position will be closed 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.
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.