1. Basic Concepts
1.1 Last Price
Refer to the exchange’s last-price candlestick chart, which serves as the standard for the execution of various orders and the triggering of liquidation.
1.2 Index Price
Calculated using the weighted spot prices of multiple exchanges.
1.3 Mark Price
The mark price is used as the price reference for triggering take-profit and stop-loss orders.
The mark price is used to calculate unrealized profit and loss and margin, and may differ from the contract’s last traded price.
1.4 Higher-Priced Buy Orders and Lower-Priced Sell Orders Execute Immediately
Buying at a price above the best ask will result in immediate execution at the best available price.
Note: Whether your order can be filled also depends on the quantity available on the opposite side.
1.5 Higher-Priced Sell Orders and Lower-Priced Buy Orders Must Wait in the Order Book
When the last traded price falls to the order price, matching must still follow time priority and price priority.
1.6 Time Priority and Price Priority
For example, for buy orders: all current buy prices are 5000. User A then places a buy order at 5100, so A receives execution priority. Users B and C then both place buy orders at 5200, and their orders are executed in sequence. If B submits first, B is filled first.
1.7 Taker
A Taker actively executes against orders already placed in the order book. In other words, the user submits an order for a specified quantity based on the prices of existing orders in the exchange’s order book, and immediately trades against those resting orders.
1.8 Maker
A Maker is the party that quotes first and places an order in the order book. The user first specifies the order’s price and quantity, then waits for other users to trade against it.
2. Detailed Explanation of Orders
2.1 Limit Orders
A limit order requires users to specify their own order price and quantity. It sets the highest price the user is willing to pay when buying or the lowest price the user is willing to accept when selling. After a limit price is set, the market prioritizes execution at prices favorable to the user. Opening limit orders reserve collateral assets, while closing limit orders reserve the position quantity available for closing. Price reference: Last-price candlestick chart
Example 1 — Limit Buy: The current last traded price of the BTCUSDT perpetual contract is 13000. If you want to buy at the lower price of 12900, you need to set a limit buy order at 12900. When the price falls to 12900 or below, the buy order will execute automatically. Conversely, if the market price is 13000 and you set a limit buy order at 13100, the system will immediately execute at the market price of 13000 under the “buy lower” principle, because 13000 is more favorable to you than the limit price of 13100.
Example 2 — Limit Sell: The current last traded price of the BTCUSDT perpetual contract is 13000. If you want to sell at the higher price of 13100, you need to set a limit sell order at 13100. When the price rises to 13100 or above, the sell order will execute automatically. Conversely, if the market price is 13000 and you set a limit sell order at 12900, the system will immediately execute at the market price of 13000 under the “sell higher” principle, because 13000 is more favorable to you than the limit price of 12900.
2.2 Opposite-Side Price
Opposite-side price means submitting an order at the first price level on the opposite side of the order book. The execution price is the opposite-side price. Price reference: Last-price candlestick chart
Suppose there are currently 50 contracts in total on the opposite side and a user places an order for 100 contracts. A maximum of 50 contracts can be filled, while the remaining 50 contracts await execution.
For example: The last traded price is 5000. Ask 1 is 5050 (10 contracts), Ask 2 is 5100 (10 contracts), Ask 3 is 5150 (10 contracts), Ask 4 is 5200 (10 contracts), and Ask 5 is 5250 (10 contracts). The user now buys 60 contracts to open a long position.
Opposite-side price: The order is placed at 5050, and 10 contracts are filled at 5050. Ask 2 becomes Ask 1, and execution continues against Ask 1, with 10 contracts filled at 5100, and so on.
Execution at the best market price means execution at the best bid or best ask price.
If the last traded price is 5300, Bid 1 is 5250 (10 contracts), Bid 2 is 5200 (10 contracts), Bid 3 is 5150 (10 contracts), Bid 4 is 5100 (10 contracts), and Bid 5 is 5050 (10 contracts). The user now sells 60 contracts to open a short position.
Opposite-side price: The order is placed at 5250, and 10 contracts are filled at 5250. Bid 2 becomes Bid 1, and execution continues against Bid 1, with 10 contracts filled at 5200, and so on.
Execution at the best market price means execution at the best bid or best ask price.
2.3 Market Orders
Market orders allow users to submit orders at the current best market prices to achieve quick execution. Price reference: Last-price candlestick chart
Example 1 — Opening a Position at Market: Suppose the current last traded price of the BTC contract is 13,000. You select a market order, enter an order quantity of 200 contracts, and click to submit the order. Your order will execute immediately, with an average execution price around 13,000. Under extreme market conditions, execution may not be immediate. For example, there may be too many market orders in the same direction, and your order may have been submitted later.
Example 2 — Close All at Market: You can use the Close All at Market function to close all your positions as quickly as possible. Suppose you hold a position of 200 BTC contracts and the current market’s last traded price is 10,000. After selecting Close All at Market, your entire position of 200 contracts will be closed, with an average execution price around 10,000. Under extreme market conditions, execution may not be immediate. If there are other pending closing orders for the position, the system will prompt you to cancel those orders and then continue with Close All at Market.
Note: Different contracts have different quantity limits per market order.
2.4 Conditional Orders
Users preset a limit or market order and its trigger price. When the market’s last traded price reaches the preset trigger price, the system submits the order to the market. Price reference: Last-price candlestick chart
Note:
1. Before a conditional order is successfully triggered, neither the position nor margin is frozen. Conditional orders may not trigger successfully. Order placement may fail due to price limits, position limits, insufficient margin, the contract being in a non-trading status, system issues, or other factors, although the trigger itself may succeed. A triggered limit order works like an ordinary limit order and is not guaranteed to execute. Unfilled limit orders will appear under current orders.
2. If the order executes, it will close your existing position or open a new position. If the order fails, your position and margin remain in place.
3. When the trigger condition is met and the order is submitted, the order will fail if the order price set by the user violates the limit-price rules.
4. Different contracts have different quantity limits per conditional
Thank you for your support and trust in SUNX.
SUNX Global Operations Team
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