What are the types of orders for Bybit contracts? How to use limit orders and market orders respectively?

Bybit offers market and limit orders for trading; market orders execute instantly at current prices, while limit orders allow setting specific prices for more control.

May 04, 2025 at 07:07 pm

Bybit, a leading cryptocurrency exchange, offers various types of orders for trading contracts, catering to different trading strategies and preferences. Understanding these order types is crucial for effectively managing your trading activities. In this article, we will explore the different types of orders available on Bybit and provide detailed guidance on how to use limit orders and market orders.

Types of Orders on Bybit

Bybit provides several types of orders to accommodate the diverse needs of traders. These include:

• Market Orders: These orders are executed immediately at the best available price in the market.
• Limit Orders: These allow traders to set a specific price at which they want to buy or sell, providing more control over the execution price.
• Stop Orders: These are used to limit losses or protect profits by triggering a market order when a certain price level is reached.
• Stop Limit Orders: A combination of stop and limit orders, these trigger a limit order when the stop price is reached.
• Conditional Orders: These are executed only when certain conditions are met, offering advanced trading strategies.

Using Market Orders on Bybit

Market orders are the simplest and fastest way to enter or exit a position. They are ideal for traders who prioritize speed over price control. Here's how to use a market order on Bybit:

• Access the Trading Interface: Log into your Bybit account and navigate to the trading page for the contract you wish to trade.
• Select the Market Order Option: On the order entry panel, choose 'Market' as the order type.
• Enter the Quantity: Specify the number of contracts you want to buy or sell.
• Execute the Order: Click the 'Buy' or 'Sell' button to execute the market order immediately.

Market orders are executed at the best available price, which may differ from the last traded price, especially in highly volatile markets. This means you might get a slightly different price than expected, but the order will be filled quickly.

Using Limit Orders on Bybit

Limit orders provide traders with more control over the price at which they buy or sell. They are useful for those who have a specific price target in mind and are willing to wait for the market to reach that price. Here's how to use a limit order on Bybit:

• Access the Trading Interface: Log into your Bybit account and go to the trading page for your desired contract.
• Select the Limit Order Option: On the order entry panel, choose 'Limit' as the order type.
• Set the Price: Enter the specific price at which you want to buy or sell the contract.
• Enter the Quantity: Specify the number of contracts you want to trade.
• Submit the Order: Click the 'Buy' or 'Sell' button to place the limit order.

Limit orders will only be executed if the market reaches your specified price. If the market does not reach your price, the order will remain open until it is either filled or canceled. This can be beneficial for traders looking to enter or exit positions at more favorable prices.

Advantages and Disadvantages of Market and Limit Orders

Understanding the pros and cons of market and limit orders can help traders choose the right type for their strategy.

• Market Orders:

  • Advantages: Immediate execution, ideal for fast-moving markets.
  • Disadvantages: No control over the execution price, potential for slippage in volatile markets.

• Limit Orders:

  • Advantages: Control over the execution price, ability to set specific entry and exit points.
  • Disadvantages: No guarantee of execution, may not be filled if the market does not reach the specified price.

Practical Examples of Using Market and Limit Orders

To illustrate how market and limit orders work in practice, consider the following scenarios:

• Scenario 1: Using a Market Order: You want to quickly enter a long position on BTC/USD Perpetual Contract. You see the current market price is $30,000, and you decide to buy 10 contracts. You place a market order, and it is executed at $30,005 due to slight price movement. Your order is filled immediately, but at a slightly higher price than expected.

• Scenario 2: Using a Limit Order: You want to buy the same BTC/USD Perpetual Contract, but you believe the price will drop to $29,500 soon. You place a limit order to buy 10 contracts at $29,500. If the market reaches this price, your order will be executed at $29,500 or better. If the market does not reach $29,500, your order will remain open.

Frequently Asked Questions

Q1: Can I modify a limit order after it has been placed on Bybit?

Yes, you can modify a limit order on Bybit. To do so, go to the 'Open Orders' section in your trading interface, find the limit order you wish to modify, and adjust the price or quantity as needed. Click 'Modify' to update the order.

Q2: What happens if a limit order is not filled?

If a limit order is not filled because the market does not reach your specified price, it will remain open until it is either filled or canceled. You can cancel the order at any time if you decide not to wait for the market to reach your price.

Q3: How does Bybit handle partial fills for limit orders?

Bybit allows partial fills for limit orders. If the market partially reaches your specified price, part of your order may be filled, and the remaining quantity will stay open until it is either fully filled or canceled.

Q4: Are there any fees associated with using market and limit orders on Bybit?

Bybit charges trading fees for both market and limit orders. The fee structure depends on your trading volume and whether you are a maker or taker. Market orders typically incur taker fees, while limit orders that add liquidity to the order book may incur maker fees. Always check Bybit's fee schedule for the most current information.