Mastering Order Execution and Advanced Trading Features
Understanding different order types and their specifications is essential for effective trading on MegaTAO. This section covers market orders, limit orders, stop orders, and advanced order features.
🎯 Order Types Overview
Order Type
Execution
Price Control
Speed
Use Case
Market
Immediate
None
Instant
Urgent execution
Limit
Conditional
Full
Variable
Price targets
Stop
Triggered
None
Instant
Risk management
⚡ Market Orders
Characteristic
Description
Impact
Execution
Immediate
No waiting
Price
Current market price
No price control
Fill
Guaranteed if liquidity exists
Reliable execution
Slippage
May execute at worse prices
Volatility risk
When to Use Market Orders
Immediate Execution: When you need to enter/exit immediately
High Liquidity: When market has good liquidity
Breakout Trading: When price breaks key levels
Emergency Exits: When you need to exit quickly
Market Order Execution
Buy Orders: Execute at the current ask price
Sell Orders: Execute at the current bid price
Spread Impact: Pay the bid-ask spread
Timing: Execute within seconds of submission
Market Order Examples
Opening a Long Position
Select Asset: Choose Alpha token to trade
Select Direction: Choose "Long" (buy)
Enter Size: Specify position size in dollars
Select Leverage: Choose leverage multiplier
Submit Order: Click "Market Buy"
Execution: Order executes at current ask price
Opening a Short Position
Select Asset: Choose Alpha token to trade
Select Direction: Choose "Short" (sell)
Enter Size: Specify position size in dollars
Select Leverage: Choose leverage multiplier
Submit Order: Click "Market Sell"
Execution: Order executes at current bid price
Limit Orders
What are Limit Orders?
Limit orders execute only at a specified price or better.
Characteristics
Price Control: You specify the execution price
Conditional Execution: Only execute if price reaches your level
No Guarantee: May not execute if price doesn't reach level
Better Prices: Can get better execution prices
Patience Required: May take time to execute
When to Use Limit Orders
Price Targets: When you have specific entry/exit prices
Better Execution: When you want better prices
Patient Trading: When you can wait for execution
Range Trading: When trading within price ranges
Limit Order Execution
Buy Orders: Execute at limit price or lower
Sell Orders: Execute at limit price or higher
Partial Fills: May execute partially if liquidity is limited
Time Limits: Can set expiration times
Limit Order Examples
Limit Buy Order
Current Price: $100
Limit Price: $95
Execution: Will buy at $95 or lower
Scenario: Waiting for price to drop to $95
Limit Sell Order
Current Price: $100
Limit Price: $105
Execution: Will sell at $105 or higher
Scenario: Waiting for price to rise to $105
Stop Orders
What are Stop Orders?
Stop orders become market orders when a specific price level is reached.
Characteristics
Trigger Price: Set price level that activates the order
Market Execution: Convert to market order when triggered
Risk Management: Used for stop losses and breakouts
No Price Control: Execute at market price when triggered
Slippage Risk: May execute at worse prices
When to Use Stop Orders
Stop Losses: Limiting losses on existing positions
Breakout Trading: Entering on price breakouts
Risk Management: Protecting against adverse moves
Trend Following: Following price momentum
Stop Order Execution
Trigger: Order activates when price reaches trigger level
Conversion: Becomes market order upon triggering
Execution: Executes at current market price
Timing: Execute within seconds of triggering
Stop Order Examples
Stop Loss Order
Position: Long position at $100
Stop Price: $90
Trigger: When price drops to $90
Execution: Sells at market price (may be below $90)
Breakout Order
Current Price: $100
Stop Price: $105
Trigger: When price rises to $105
Execution: Buys at market price (may be above $105)
Advanced Order Features
Take Profit Orders
Automated profit-taking at predetermined levels.
How Take Profit Orders Work
Profit Target: Set specific profit level
Order Type: Can be market or limit order
Execution: Automatic when target reached
Management: Monitor and adjust as needed
Take Profit Order Examples
Market Take Profit
Position: Long position at $100
Take Profit: $110
Execution: Sells at market price when price reaches $110
Result: Locks in profit automatically
Limit Take Profit
Position: Long position at $100
Take Profit: $110
Execution: Sells at $110 or higher when price reaches $110
Result: Better execution price possible
Stop Loss Orders
Automated loss-limiting at predetermined levels.
How Stop Loss Orders Work
Loss Limit: Set specific loss level
Order Type: Can be market or limit order
Execution: Automatic when limit reached
Management: Monitor and adjust as needed
Stop Loss Order Examples
Market Stop Loss
Position: Long position at $100
Stop Loss: $90
Execution: Sells at market price when price drops to $90
Result: Limits losses automatically
Limit Stop Loss
Position: Long position at $100
Stop Loss: $90
Execution: Sells at $90 or higher when price drops to $90
Result: Better execution price possible
Trailing Stop Orders
Stop orders that follow favorable price movements.
How Trailing Stops Work
Initial Stop: Set initial stop loss level
Trailing Distance: Set distance to trail behind price
Direction: Only moves in favorable direction
Execution: Becomes market order when triggered
Trailing Stop Examples
Long Position Trailing Stop
Position: Long position at $100
Trailing Stop: $5 below current price
Price Rises to $110: Stop moves to $105
Price Rises to $120: Stop moves to $115
Price Drops to $115: Stop triggers, sells at market
Order Book Integration
How Order Books Work
MegaTAO integrates with professional-grade order matching systems.
Order Book Features
Real-time Updates: Live bid/ask prices
Market Depth: Shows available liquidity at different levels
Price Discovery: Transparent price formation
Liquidity Provision: Market makers provide liquidity
Reading the Order Book
Bid Side: Buy orders (highest bid on top)
Ask Side: Sell orders (lowest ask on top)
Spread: Difference between best bid and ask
Depth: Available liquidity at each price level
Order Book Strategies
Market Making
Provide Liquidity: Place orders on both sides
Capture Spread: Profit from bid-ask spread
Risk Management: Manage inventory risk
Automation: Use algorithms for order placement
Liquidity Taking
Consume Liquidity: Use market orders
Pay Spread: Accept bid-ask spread cost
Immediate Execution: Get instant fills
Strategy: Use when you need immediate execution
Self-Trade Prevention
What is Self-Trading?
Self-trading occurs when your orders trade against each other.
Self-Trade Prevention Features
Order Matching: Prevents orders from same account trading
Time Delays: Adds delays between order modifications
Account Linking: Prevents related accounts from trading
⚠️ Important Note: Understanding order types is crucial for effective trading. Always consider execution risk, slippage, and market conditions when choosing order types.