Futures Order Types Explained

This document explains key order types available on AEGET Futures to help users understand how to place trades efficiently and manage risk effectively.

1. Key Concepts

1.1 Last Traded Price

The price of the most recent transaction in the market.

1.2 Index Price

A weighted average of spot prices from major exchanges, used as a market reference to reduce price manipulation.

1.3 Immediate Execution for Higher Buy or Lower Sell Orders

Buy orders priced above the best ask or sell orders below the best bid will be matched immediately, depending on available liquidity.

1.4 Waiting for Execution for Higher Sell or Lower Buy Orders

Orders priced above the best bid (sell) or below the best ask (buy) remain on the order book until the market reaches the specified price.

1.5 Time and Price Priority

Orders with the same price are executed in the order they were submitted. Better-priced orders are prioritized.

1.6 Taker

A taker is a user who places an order that is matched immediately with an existing order on the book.

1.7 Maker

A maker places an order that adds liquidity to the market by sitting on the order book until matched.

2. Order Types

2.1 Limit Order

Users specify a price to buy or sell. The order is executed only if the market reaches the specified price.

Example:

• Buy Limit: Set at 12900 when market is at 13000; executed when price falls to 12900.
• Sell Limit: Set at 13100 when market is at 13000; executed when price rises to 13100.

Note:

• Orders violating the low-buy/high-sell rule may be executed at market price.
• Limit orders are not guaranteed to fill and may be partially executed or remain open depending on liquidity.

2.2 Counterparty Price Order

Executed at the best available price on the opposite side of the book. Suitable for fast execution while controlling price.

Example:

• Buy at 5050 if that's the best ask.
• Sell at 5250 if that's the best bid.

2.3 Market Order

Executes the entire order immediately at the best available prices. Ideal for speed over precision.

Example:

• Market Buy: Instantly buy 200 contracts at the best available prices.
• Market Close: Close 200 contracts quickly at market price.

2.4 Trigger Order

Trigger orders are conditional orders that execute only when the market reaches a predefined trigger price.

Types:

• Trigger Limit: Posts a limit order once the trigger price is reached.
• Trigger Market: Places a market order upon trigger activation.

Features:

• Requires setting both a trigger price and execution price (for limit).
• Margin is reserved only upon trigger.
• Useful for automated entry, stop loss, or take profit strategies.

3. Summary

AEGET offers a range of order types to support various trading strategies and needs. Users can choose the most appropriate method based on market conditions and individual trading preferences.