To help users fully understand the order placement methods in contract trading, the following introduces the three main order types—Market Order, Limit Order, and Trigger Order—along with an explanation of the matching rules based on “price priority” and “time priority.”
Matching Principles
Trading follows “price priority” and “time priority.”
Buy orders with higher prices and sell orders with lower prices will be matched first.
When a high buy (buy price > ask1) or low sell (sell price < bid1) occurs, the order will be executed immediately at the best available market price.
Conversely, high sell or low buy orders must wait in the order book until the market reaches the specified price.
1. Limit Order
Users set a desired execution price. A limit order may only be filled once the market reaches that price.
Limit Buy: Market must fall to the order price. Limit Sell: Market must rise to the order price.
If the limit price results in a high buy or low sell, the system will execute it immediately at market price.
Example:
Current price: 10,000
Buy at 10,100 → Immediately executed at 10,000 Buy at 9,800 → Must wait until the market falls
2. Market Order
No need to set a price.
The system executes the order immediately at the best available price.
It is the fastest method, suitable for quick entries, exits, stop-losses, or urgent trades.
The final execution price depends on order book depth.
3. Counterparty Order
The system executes the order at the current ask1 (for buying) or bid1 (for selling).
This may offer better control over slippage compared to a market order.
Example:
If ask1 = 5050 → Buy counterparty price = 5050.
4. Trigger Order
A “condition-based” order that only becomes active when the market reaches a predefined trigger price.
It includes:
Trigger Limit Order: When the trigger price is reached, the system places a limit order. Trigger Market Order: When the trigger price is reached, the system submits a market order.
This type is ideal for planned take-profit, stop-loss, or breakout strategies.
After activation, the execution logic of a trigger limit order is the same as a normal limit order.
5. Reasons Why Orders May Not Execute
Even if the market reaches your price, an order may be partially filled or not executed due to:
Insufficient order book depth Sudden market volatility causing heavy order flow Price touching the target only momentarily without enough volume Other orders with better prices or earlier timestamps taking priority
6. Risk Warnings
Market orders execute instantly but have uncertain prices, especially during high volatility. High leverage may amplify risks, and slippage may widen when trigger orders activate. In extreme market conditions, the actual execution price after a trigger may significantly differ from the trigger price.
Please manage your positions responsibly, set proper stop-loss and take-profit levels, and stay alert to liquidation risks.
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