How orders work
The different order types and how Signal places these on Binance.
Limit Target Orders
A limit target is a request to sell at a specific price (the "limit price").
You specify the limit price and your order will be filled if the market price reaches your limit price.
With limit orders:
The price sold will always be the price you set or better
The order can be partially filled, so there is no guarantee that your entire order will sell
When these orders are placed on Binance, they are done so as LIMIT orders.
Market Target Orders
A market target is a request to sell at a specific price (the "trigger condition").
You specify the trigger condition and at that price your target will be sold immediately.
With market orders:
The price sold may be less than the price you set
The order is guaranteed to be filled entirely
When these orders are placed on Binance, they are done as TAKE-PROFIT-LIMIT orders with a low limit price.
What this means is that at the trigger condition a limit order will be placed. Since limit orders fill at the limit price or better, this means that your order will fill at the best possible price. This most likely means the same as the trigger condition or a tiny bit less.
This is the equivalent to waiting until the trigger condition is met and placing a market order directly. The only difference is that placing the order as a TAKE-PROFIT-LIMIT will result in execution speeds of 1-4 seconds faster, which can help protect you in the event of negative price movement.
Limit Stoploss Orders
Limit stoploss orders are not technically possible. Unlike targets, a stoploss cannot be placed as a limit order because it is below the current price. And, as you now know, limit orders fill at the specified price or better. This means that a stoploss limit would fill immediately.
As a result, the only way to do limit stoploss orders is to place a STOP-LOSS-LIMIT order with the limit price the same as the trigger price.
The technical limitations of how orders work on exchanges mean that with limit stoploss orders it is possible that your order can be skipped in the event of a flash crash.
Experienced users may wish to use a limit stoploss with a price lower than the trigger condition, but given the small benefit this provides relative to simply using a market stoploss and give the high likelihood of misuse, we have opted not to enable limit stoploss orders at this time.
If you would really like to use limit stoplosses, please contact us and let us know at support@signalgroups.com.
Market Stoploss Orders
A market stoploss is equivalent to a market target.
You specify the trigger condition and at that price your stoploss will be sold immediately.
With market orders:
The price sold may be less than the price you set
The order is guaranteed to be filled entirely
When these orders are placed on Binance, they are done as STOP-LOSS-LIMIT orders with a low limit price.
What this means is that at the trigger condition a limit order will be placed. Since limit orders fill at the limit price or better, this means that your order will fill at the best possible price. This most likely means the same as the trigger condition or a tiny bit less.
This is the equivalent to waiting until the trigger condition is met and placing a market order directly. The only difference is that placing the order as a STOP-LOSS-LIMIT will result in execution speeds of 1-4 seconds faster, which can help protect you in the event of negative price movement.
Limit Buy Orders
Limit buy orders are similar to limit targets.
A limit buy is a request to buy at a specific price (the "limit price").
You specify the limit price and your order will be filled if the market price reaches your limit price.
With limit orders:
The price sold will always be the price you set or better
The order can be partially filled, so there is no guarantee that your entire order will sell
When these orders are placed on Binance, they are done so as LIMIT orders.
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