Binance Futures Opening and Closing: The Difference between Counterparty Price and Limit Price

Binance Futures offers two key order types—limit price for precise trades and counterparty price for instant execution, each suited to different trading strategies.

Jun 10, 2025 at 05:35 am

What Is Binance Futures?

Binance Futures is a popular trading platform that allows users to trade cryptocurrency futures contracts. These contracts enable traders to speculate on the future price of cryptocurrencies such as Bitcoin, Ethereum, and many others without actually owning the underlying asset. One of the key features of Binance Futures is its order types, which include counterparty price and limit price options for opening and closing positions.

Understanding these two order types is crucial for effective trading. Each has distinct characteristics and implications depending on market conditions and execution priorities. This article delves into how each works, when to use them, and what impact they have on your trades.

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Understanding Limit Price in Binance Futures

A limit price allows you to specify the exact price at which you want your order to be executed. If you're opening or closing a position using a limit price, your trade will only go through if the market reaches your specified level. This gives you greater control over entry and exit points.

• When placing a buy limit order, you must set it at a price lower than the current market price.
• For a sell limit order, the price should be higher than the current market price.

This type of order is ideal for traders who are not in a hurry and prefer to wait for the market to reach their desired levels before entering or exiting a trade. It also helps avoid slippage, especially in volatile markets.

However, there's a risk that your order may not get filled at all if the market doesn't reach your set price. That’s why limit orders are often used by patient traders who prioritize price precision over immediate execution.

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What Is Counterparty Price in Binance Futures?

The counterparty price option refers to an order that gets executed immediately at the best available price in the market. It functions similarly to a market order, where speed takes precedence over price accuracy.

When you select counterparty price, your order will match with existing orders on the order book at the most favorable prices currently available. This ensures instant execution, but it also means you might end up with a slightly different price than expected, especially during high volatility.

• In fast-moving markets, the executed price can differ significantly from the last traded price.
• This method is suitable for traders who want to open or close positions quickly, regardless of minor price differences.

Using counterparty price eliminates the uncertainty of whether your order will be filled, making it a preferred choice for urgent trades or breakout scenarios.

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Differences Between Limit Price and Counterparty Price

There are several key differences between limit price and counterparty price when it comes to opening and closing positions on Binance Futures:

• Execution Speed:

  • Counterparty price guarantees immediate execution.
  • Limit price may take time or may not execute at all.

• Price Certainty:

  • With limit price, you know exactly at what price your trade will occur.
  • Counterparty price offers no such guarantee, especially in volatile markets.

• Use Cases:

  • Use limit price when you're aiming for specific support/resistance levels or setting take-profit/stop-loss orders.
  • Opt for counterparty price when timing is critical, such as during news events or sudden market moves.

• Slippage Risk:

  • Counterparty price is more prone to slippage due to rapid market fluctuations.
  • Limit price avoids slippage but risks missing the trade altogether.

These distinctions make each method suitable for different trading strategies and objectives.

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How to Choose Between Limit Price and Counterparty Price

Deciding which order type to use depends on your trading style, strategy, and current market conditions. Here are some considerations to help guide your decision:

• Market Volatility:
  
  If the market is highly volatile, using counterparty price ensures your trade executes quickly, even if the final price isn’t exactly what you saw.

• Entry Precision:
  
  If your strategy relies on precise entry levels (e.g., Fibonacci retracements or chart patterns), then limit price is the better option.

• Order Book Depth:
  
  Check the depth of the order book. If liquidity is low, a limit price might not get filled, whereas a counterparty price order would execute instantly.

• Risk Tolerance:
  
  Traders who are comfortable with slight deviations in execution price can opt for counterparty price. Those who need strict price control should stick with limit price.

• Trading Goals:
  
  Short-term scalpers often prefer counterparty price for quick entries and exits. Position traders may rely on limit price to enter at strategic levels.

By aligning your order type with your goals and market environment, you can optimize your trading performance on Binance Futures.

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Step-by-Step Guide: Placing Orders Using Limit Price and Counterparty Price

Here’s how you can place both types of orders on the Binance Futures platform:

• Log in to your Binance account and navigate to the Futures section.
• Select the cryptocurrency pair you wish to trade (e.g., BTC/USDT).
• Scroll down to the order placement panel on the right side of the screen.
• Choose either Limit or Market under the order type options:

      
  If selecting **Limit**, enter your desired **price** and **quantity**.
  If choosing **Market**, the system will automatically use **counterparty price** for immediate execution.

• Review your order details carefully before clicking **Buy/Long** or **Sell/Short**.
• Monitor your open orders in the **Orders tab** to confirm execution status.

For advanced traders, enabling Post-Only or Reduce-Only options can further refine order behavior, but those settings fall outside the scope of this discussion.

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Frequently Asked Questions

Q: Can I change an order from counterparty price to limit price after submission?


No, once an order is placed, you cannot modify its type. You'll need to cancel the existing order and place a new one with the desired settings.

Q: Why did my counterparty price order get executed at a worse price than expected?

This happens due to slippage, especially during periods of high volatility or low liquidity. The system fills your order at the best available price in the order book at the moment of execution.

Q: Does Binance Futures charge different fees for counterparty price and limit price orders?

Yes, fee structures vary based on whether you're a maker or a taker. Limit orders typically qualify as maker orders (if not filled immediately) and incur lower fees, while counterparty price orders usually act as taker orders and come with higher fees.

Q: How do I view historical executions for my limit and counterparty price orders?

You can check your Trade History section under the Futures dashboard. It provides detailed records of executed trades, including order type, execution price, and fees incurred.