Post-Only Order

Introduction to Post-Only Orders

Post-Only Orders, which are an additional option to Limit or Conditional Limit Orders, help to firmly guarantee that your Limit Orders will be added to the order book and, as a result, pay a smaller trading charge than when it is finally executed. By choosing this option, the limit order will be automatically canceled by the system if it determines that it will be executed as soon as the order is placed.

Main purpose for trading

The Post-Only option allows traders to guarantee that their Limit Orders will enter the order book and, as a result, pay a lower trading fee when the order is executed. Traders have more control over their trading fees, which is important for traders who trade in high volumes or on the spot.

For Example:

In a highly volatile market situation (e.g. dumping), trader A places a buy long 100,000 BTCUSD contract at USD 9000 and the current best ask price shown in the order book is 9001 but quickly moved to 8995 when the Limit Order is finally placed. The following are 2 examples of Trader A placing the Limit order with or without selecting the Post-Only option.

• Without Post-Only Option As the best ask price has already moved to a better price point (USD 8995) compared to the buy order's limit price (USD 9000), the system will immediately execute the Limit Order as a Market Order and fill it from the best available ask price all the way to USD 9000. As a result, this may unintentionally cause trader A to pay a taker fee when actually expecting to pay a lower trading fee (maker fee). Note: The execution of your Limit Order will also be hugely dependent on your Time-In-Force strategy chosen for your limit order.

• With post-only Option As the best ask price has already moved to a better price point (USD 8995) compared to the buy order's limit price (USD 9000), resulting in immediate order execution, the system will automatically cancel this limit order as it was unable to be placed into the order book. This means that Trader A will not unintentionally pay higher trading fees (taker fee).