Order types and executions
When trading on Backpack Exchange, it's crucial to understand the different types of orders you can place.
This guide will walk you through each order type and its purpose to help you execute your trading strategy effectively.
Order Types
Market Order
Type: Market
Description: A market order is executed immediately at the best available current price.
You specify the quantity of the asset you want to buy or sell, and the trade executes at the prevailing market price.
Key Points: You must specify either a quantity or quoteQuantity when placing a market order.
No price setting is needed; the order will fill at the best available price.
Market orders are subject to slippage in fast-moving markets.
Limit Order
Type: Limit
Description: A limit order allows you to set a specific price at which you want to buy or sell an asset.
This order type guarantees the price but not the execution.
Key Points: You need to set both a price and quantity for a limit order.
The order will only execute if the market price reaches your set limit price.
A limit order can be a 'maker' order if it doesn't match immediately with an existing order, adding liquidity to the market.
Post Only
Field: postOnly
Description: This is a conditional flag for limit orders that ensures the order will be added to the order book and not match with a pre-existing order.
If it would match, the order is canceled instead.
Key Points:
Ensures the order will be executed as a maker order, contributing to market liquidity.
Time In Force
Field: timeInForce
Options: GTC, IOC, FOK
Description: This determines the length of time your order will remain active before it is executed or expires.
GTC (Good 'Til Canceled): The order will stay active until it is filled or manually canceled.
IOC (Immediate or Cancel): The order must be executed immediately, and any unfilled portion is canceled.
FOK (Fill or Kill): The order must be filled in its entirety immediately, or it is entirely canceled.
Self-Trade Prevention
Field: selfTradePrevention
Options: RejectTaker, RejectMaker, RejectBoth, Allow
Description: These settings prevent you from matching an order with another one of your own orders.
RejectTaker: Cancels the taker side of the trade if it matches with one of your existing orders.
RejectMaker: Cancels the maker side of the trade if it matches with one of your existing orders.
RejectBoth: Cancels both sides of the potential self-trade.
Allow: Allows both sides of the self-trade to execute.
Trigger Price
Field: triggerPrice
Description: This is used for conditional orders, such as stop-limit orders.
The triggerPrice is the price at which your limit order becomes active on the order book.
Detailed API Documentation
Understanding these order types and conditions will enhance your trading experience on Backpack Exchange. Choose the order type that aligns with your trading goals and market conditions.
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