Understanding Order Execution

Every professional platform relies on these primary methods to move capital.

• Market Orders: Execute immediately at the best available current price; these prioritize speed over price precision.
• Limit Orders: Allow you to specify your price; these prioritize price precision over immediate execution.
• Stop-Limit Orders: A conditional order that places a limit order only once a specific "stop" price is hit; critical for automating exits.

Moving beyond basic orders helps you manage larger positions without disrupting the market.

• Post-Only Orders: Ensures your limit order is added to the order book rather than executing immediately, guaranteeing you receive "maker" fee rebates.
• Reduce-Only Orders: Specifically used to close or downsize existing positions, preventing the accidental opening of a counter-position.
• Take-Profit/Stop-Loss (TP/SL): The most essential risk management tool; it defines your exit logic before you even enter the trade.

Execution costs can silently erode your profit margins over time.

• Slippage: The difference between your expected price and the price at which the trade is actually filled.
• Slippage Tolerance: A setting that prevents an order from filling if the price moves beyond your acceptable limit.
• Liquidity Depth: In perpetual futures, always check the order book depth before entering a large position to ensure you don't cause excessive slippage.