Order Types

DePerp order types are specific instructions that traders give to exchanges to help them buy or sell assets at desired prices and under specific conditions. Understanding and using various order types can help traders execute their strategies more effectively and manage their risk. At the moment, all markets are isolated for the selected collateral.

Buy Market Order
This order type allows you to buy an asset immediately at the best available price. It's executed quickly, ensuring that you don't miss out on a potential opportunity. However, since it's executed at the current market price, you may end up buying at a higher price than anticipated if the market is volatile.

Buy Limit Price Order
With this order type, you can specify the maximum price at which you're willing to buy an asset. Your order will only be executed if the asset's price falls to or below your specified limit. This helps you control the cost of your purchase but may result in your order not being executed if the price doesn't reach your limit.

Stop-limit / Stop-loss

A stop order on a DePerp is a special rule you set to help you trade contracts that don't have an end date. There are two main types: stop-loss orders and stop-limit orders.

Stop-loss
This is like saying, "If the price goes down too much, sell my contract automatically." It helps you avoid losing too much money.

This is like saying, "If the price goes down to a certain point, try to sell my contract, but only if I can get a good price for it." It helps you control how much money you might lose.

To use stop orders, follow these steps:

Choose the contract: Pick the trading pair you want to trade on the DePerp exchange (e.g., BTC/USD).

Set a stop price: Decide the price that will trigger your stop order.

Pick the order type: Choose between stop-loss or stop-limit orders based on how much risk you want to take.

Enter the details: Tell the exchange your stop price, and for stop-limit orders, the minimum price you want to sell for. Also, tell them how many contracts you want to trade.

Watch your order: Keep an eye on the market. If the stop price is reached, your order will happen automatically.

Stop orders help you trade more safely. Be careful when choosing your stop prices and amounts, and always watch the market.

Take Profit / Take Limit Price orders

These are orders that allow you to lock in profits when the market moves in your favor. A Take Profit order is essentially the opposite of a stop-loss order. You set a target price above your entry point (for long positions) or below your entry point (for short positions), and if the market reaches that price, your position will automatically be closed, securing your profit.

To use Take Profit orders, follow these steps:

Choose the contract: Pick the trading pair you want to trade on the Deperp exchange (e.g., BTC/USD).

Set a target price: Decide the price at which you want to close your position and take your profit.

Enter the details: Tell the DePerp your target price and the amount position you want to close at that price.

Watch your order: Keep an eye on the market. If the target price is reached, your order will happen automatically, and your profit will be locked in.
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Reduce-only orders

These are orders designed to reduce your position size without increasing it. A reduce-only order can be a limit order or a stop order, but it will only be executed if the trade reduces the size of your existing position. If the execution of the order would result in increasing your position size, the order will not be executed or will be partially filled to the point where your position size remains unchanged or reduced.

Reduce-only orders are particularly useful for risk management, as they allow traders to secure profits and limit losses without accidentally increasing their exposure to the market.

To use Reduce-only orders, follow these steps:

Choose the order type: Select whether you want to create a limit order, stop-loss order, or stop-limit order with the Reduce-only option.

Enter the details: Set the necessary parameters for the chosen order type, such as the price and the number of contracts you want to trade.

Enable the Reduce-only option: Make sure to check the box or toggle the switch for the Reduce-only option when placing your order.

Watch your order: Monitor the market and your order. If the conditions are met, your order will be executed, but only to the extent that it reduces your position size.

By understanding and utilizing Take Profit and Reduce-only orders, you can manage your risk more effectively and enhance your trading strategy.