What is a conditional order
A Trigger Order will only be triggered when the preset conditions are met. Traders need to specify a trigger price (Trigger Price) as a condition to activate the order. At present, the system uses the latest transaction price as the trigger condition.
Note: Conditional orders do not have any margin requirements before triggering. This means that the trader can successfully place any conditional order, but if the account does not have sufficient margin at the time of triggering, the order will fail.
Currently, we offer two types of conditional orders:
Conditional limit order
When the price reaches the preset trigger price, the limit order will enter the order table according to its order price.
Conditional Market Order When the price reaches the preset trigger price, the market order will be executed at the best price at that time.
Conditional Single Scenario
Conditional orders are often used in the following scenarios:
Chasing the upside: A breakout entry, setting the trigger price above the resistance level, and buying bullish if the price breaks the resistance level.
Sell: A breakout entry, setting the trigger price below the support level, and selling bearish if the price falls below the resistance level.
Take Profit: Leave the target position, set the trigger price at the target take profit position, and close the position to take profit if the price reaches the take profit position.
Stop loss: When the target level leaves the market, the trigger price is set at the target stop loss level. If the price reaches the stop loss level, the position will be closed and the stop loss will be closed.
case
Chasing up scenario: In November 2020, when BTC was at $19,500, I boldly predicted (actually an afterthought) that if BTC exceeded $20,000, it would accelerate its rise to $50,000. If it couldn’t exceed $20,000, it would not be bullish in the short term. ,continue waiting. So I want to place an order like "if the BTC price reaches $20,000, I will buy 1 more BTC, otherwise, forget it". At this time, I found that neither limit orders nor market orders could meet my needs, because I didn’t know if and when BTC could reach $20,000, and I couldn’t keep an eye on it 24 hours a day. So I placed a conditional order with the following parameters:
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Trigger price: 20000
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Order direction: buy bullish
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Order price: market price
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Order Amount: 1 BTC
Copied!
The execution logic of my conditional order is as follows: my conditional order is like a robot, which constantly monitors whether the market price reaches the trigger price. When the market price reaches the trigger price, the robot immediately submits one according to my parameters: buy Enter a market order of 1BTC. Normally, this market order will be filled immediately, so I can open a long 1BTC position near $20,000, perfect!
This scenario is a scenario in which a conditional order is used to chase up the market. Similarly, a conditional order can also be used to sell.
In addition to opening positions such as chasing up and down, we can also use conditional orders to close positions, which is the usage scenario of take profit and stop loss.