What is the difference between limit, market, and conditional orders on Bybit?

Understanding Order Types on Bybit

When trading on Bybit, users have access to several order types that allow them to execute trades with precision and control. The three primary order types—limit, market, and conditional—serve distinct purposes and are used under different market conditions. Each type affects how and when your trade is executed, the price you pay or receive, and your exposure to slippage. Understanding the core differences among these orders is essential for effective trading on the platform.

What Is a Limit Order?

A limit order allows traders to set a specific price at which they are willing to buy or sell a cryptocurrency. This type of order will only execute when the market price reaches the price specified in the order. For example, if you want to buy Bitcoin at $60,000, you can place a limit buy order at that price. The order will remain open until the market trades at or below $60,000.

• You enter the desired order price in the price field
• You specify the quantity of the asset you wish to trade
• The order appears in the order book only if it doesn’t match existing orders immediately
• It can be partially or fully filled depending on market liquidity
• Unfilled orders remain active until canceled or executed

A key advantage of a limit order is price control. Traders avoid paying more (for buys) or receiving less (for sells) than their intended price. However, there is no guarantee of execution, especially in fast-moving markets where prices may skip over the limit price.

How Does a Market Order Work?

A market order executes immediately at the best available price in the market. Unlike a limit order, it does not allow price customization. When you place a market order, you are essentially saying, “Buy or sell this asset right now, whatever the current price is.”

• Click on the Market tab in the order section
• Enter the amount you wish to trade
• Confirm the order—execution happens instantly
• The order matches against existing limit orders in the order book, starting from the best price
• Due to varying liquidity, large market orders may be filled at multiple prices

One critical aspect of market orders is slippage. In volatile or low-liquidity markets, the final execution price may differ significantly from the last traded price. For instance, buying a large amount of Ethereum during high volatility might result in a higher average price than expected. Therefore, market orders are best suited for traders who prioritize speed over price precision.

Explaining Conditional Orders on Bybit

Conditional orders on Bybit are designed to trigger a limit or market order when a specified price condition is met. These are commonly used for stop-loss, take-profit, or entry orders in anticipation of future price movements. Conditional orders are not placed directly into the market; instead, they wait off-book until the trigger price is reached.

• Navigate to the Conditional Orders section on the trading interface
• Choose the order type (limit or market) that will execute upon triggering
• Set the trigger price—this is the price that activates the order
• Define the execution price if placing a limit order, or leave it at market price
• Specify the quantity and direction (buy/sell)
• Choose the trigger type: Mark Price or Last Price

For example, if Bitcoin is trading at $62,000 and you want to sell if it drops to $60,000, you can set a conditional sell order with a trigger price of $60,000. Once the market reaches that level, your predefined limit or market order activates. This functionality helps traders automate their strategy without constant monitoring.

Key Differences in Execution and Use Cases

The fundamental distinction among these order types lies in execution timing, price control, and use case. A limit order gives full price control but risks non-execution. A market order guarantees execution but sacrifices price certainty. A conditional order introduces automation by setting a future trigger, combining aspects of both limit and market execution depending on configuration.

• Limit orders are ideal for entering or exiting positions at desired levels without chasing the market
• Market orders are best when immediate execution is critical, such as closing a losing position quickly
• Conditional orders are suited for risk management and strategic entries, especially during off-hours

Each order type interacts differently with the order book. Limit orders add liquidity when placed passively, while market orders remove liquidity by matching with existing orders. Conditional orders do not impact the order book until triggered, making them invisible to the market until activation.

Step-by-Step Guide to Placing Each Order Type

To place a limit order:

• Open the trading interface for your desired contract (e.g., BTCUSD Perpetual)
• Select Limit from the order type options
• Input your desired price and quantity
• Choose Buy or Sell
• Click Place Buy/Sell Order

To place a market order:

• Switch to the Market order tab
• Enter the quantity you wish to trade
• Review the estimated cost or proceeds
• Click Buy or Sell to execute instantly

To place a conditional order:

• Go to the Conditional Orders tab
• Click + New Order
• Set the trigger price and select Mark Price or Last Price as the trigger source
• Choose whether the resulting order will be Limit or Market
• If limit, set the execution price and quantity
• Confirm and submit the order

Ensure your leverage and position mode are correctly configured before placing any order, as these settings affect margin and liquidation risks.

Frequently Asked Questions

Can I modify a conditional order after placing it?Yes, you can edit or cancel a conditional order before it is triggered. Navigate to the Conditional Orders section, locate the order, and use the Edit or Cancel option. You can change the trigger price, order type, quantity, or execution price, provided the trigger has not been met.

What happens if the market gaps past my limit order price?If the price moves rapidly and skips over your limit order price, your order may not execute. For instance, if you have a buy limit at $50,000 and the price jumps from $49,900 to $50,100 instantly, your order will remain unfilled. This is common during high volatility or low liquidity events.

Is there a fee difference between limit and market orders on Bybit?Yes. Limit orders placed as makers (adding liquidity) usually have lower or negative fees (maker rebates), while market orders act as takers (removing liquidity) and incur higher taker fees. The exact fee structure depends on your trading tier and volume.

Can a conditional order use a market order as the execution type?Absolutely. When setting up a conditional order, you can choose Market as the execution type. This means once the trigger price is reached, a market order will be sent immediately, ensuring fast execution regardless of the prevailing price.