Navigating the fast-paced world of cryptocurrency trading requires precision, speed, and a deep understanding of order types. For traders engaging in perpetual contracts, especially with coin-margined positions, mastering limit orders is essential for controlling execution price, minimizing slippage, and optimizing fees. This comprehensive guide walks you through everything you need to know about using limit orders on web platforms, including advanced features like Post Only, Fill or Kill (FOK), Immediate or Cancel (IOC), Optimal N-Tier, and Lightning Close.
Whether you're opening a new position or closing an existing one, these tools empower you to trade strategically and efficiently.
Understanding Limit Orders
A limit order allows traders to specify both the price and quantity at which they wish to buy or sell. Unlike market orders that execute immediately at prevailing prices, limit orders give you control over your entry and exit points. You can set the maximum price you're willing to pay when buying or the minimum price you’ll accept when selling.
This level of control makes limit orders ideal for both opening and closing positions in perpetual contracts.
👉 Discover how professional traders use limit orders to gain a strategic edge in volatile markets.
Key Features of Limit Orders
- Set your desired price and quantity manually.
- Orders execute only when market conditions meet your criteria.
- Remain active until filled, canceled, or expire (unless modified by execution instructions).
- Can be used for both long and short positions.
Advanced Execution Instructions
Limit orders come with optional execution mechanisms that refine how and when your trade is processed. These settings help align your trades with your risk tolerance and trading strategy.
1. Post Only (Make Only)
The Post Only option ensures your order will not execute immediately against existing orders on the order book. Instead, it only adds liquidity by placing a new limit order. If your price would result in an immediate match, the order is automatically canceled — protecting your status as a maker and qualifying you for lower or zero maker fees.
Example: You place a buy order at $7327.70, below the current ask price. Since it won’t fill instantly, it posts to the book successfully. But if you set it at $7327.90 — matching the best sell price — the system cancels it to preserve maker status.
2. Immediate or Cancel (IOC)
An IOC order demands partial or full execution upon submission. Any portion that cannot be filled immediately is canceled. This prevents lingering unfilled orders while allowing partial fills.
Example: You place a buy IOC order for 7,000 contracts at $7350. If only 6,609 are available at or below that price, those execute instantly and the remaining 391 are canceled.
3. Fill or Kill (FOK)
A FOK order requires complete fulfillment upon submission — all or nothing. If the entire quantity isn’t available at your specified price or better, the entire order is canceled.
Example: A 7,000-contract FOK buy order at $7350 fails because only 6,609 contracts are available. However, reducing the size to 6,000 may allow full execution if sufficient depth exists.
Default Behavior: Good 'Til Canceled (GTC)
When no execution instruction is selected, limit orders default to staying active until manually canceled or executed — often referred to as "Good 'Til Canceled."
Important Trading Rules
To maintain market integrity and protect traders, certain restrictions apply:
- Buy prices must not exceed the current highest bid.
- Sell prices must not fall below the current lowest ask.
- Opening positions: Limit orders lock in required margin from your collateral.
- Closing positions: Orders reserve available position size until executed.
These safeguards prevent misentries and ensure sufficient funds are available to support trades.
Optimal N-Tier: Fast Execution Without Manual Pricing
For traders who want faster fills without sacrificing too much control, Optimal N-Tier offers a smart solution. Instead of entering a specific price, you choose how deep into the order book to go — selecting from Optimal 5, 10, or 20 tiers.
Once selected:
- Your order executes against available prices across the chosen levels.
- Unfilled portions automatically become standard limit orders on the book.
- Works for opening, closing, limit, and planned orders.
This feature helps avoid missed opportunities during rapid price movements by accelerating execution speed.
⚠️ Note: If system checks indicate that using Optimal N-Tier could leave your position with a collateral ratio below zero after closing, the function will be disabled temporarily.
Lightning Close: Rapid Exit in Volatile Markets
During sharp market swings, getting out of a position quickly can mean the difference between a small loss and liquidation. The Lightning Close feature enables ultra-fast exits by leveraging up to 30 price tiers on the opposite side of the book.
How it works:
- Upon triggering, your close order sweeps through up to 30 levels of available liquidity.
- Partially filled amounts beyond tier 30 become limit orders at the last executed price.
- Offers predictable pricing outcomes even in turbulent conditions.
How to Use Lightning Close
There are two simple ways to initiate a Lightning Close:
- Go to the Close Position interface → Select Lightning Close → Enter amount → Confirm.
- From the Positions panel → Click Lightning Close → Choose percentage of holding → Execute.
⚠️ Availability Warning: If executing at the 30th-tier price would result in a negative collateral ratio post-close, Lightning Close will be unavailable until market or position conditions improve.
👉 See how Lightning Close can protect your portfolio during sudden market drops.
Frequently Asked Questions (FAQ)
Q: What is the difference between IOC and FOK?
A: An IOC (Immediate or Cancel) order accepts partial execution — any unfilled portion is canceled. A FOK (Fill or Kill) order requires full execution; otherwise, the entire order is canceled.
Q: Why was my Post Only order rejected?
A: Your Post Only order was likely priced at a level that would have matched an existing order immediately. To preserve maker status, such orders are canceled instead of executing.
Q: Can I use Optimal N-Tier for opening new positions?
A: Yes. Optimal N-Tier can be used for opening positions, closing them, or placing regular and planned limit orders.
Q: Does Lightning Close guarantee full execution?
A: While Lightning Close maximizes fill probability by accessing 30 price tiers, full execution depends on market depth. Remaining unfilled volume becomes a limit order.
Q: Are there risks associated with using these advanced order types?
A: Yes. Misuse of FOK or IOC may lead to missed trades or incomplete fills. Always assess market depth and volatility before placing such orders.
Q: How do I know if Lightning Close is available?
A: The system automatically disables Lightning Close if using it would reduce your collateral ratio below zero after closing. Monitor your position health to maintain access.
Final Tips for Effective Trading
- Use Post Only when aiming for maker fee benefits and placing passive orders.
- Choose IOC when seeking quick partial fills without leaving open orders.
- Reserve FOK for large trades where only full execution makes sense.
- Leverage Optimal N-Tier during fast-moving markets to improve fill chances.
- Activate Lightning Close when rapid exits are critical — especially near liquidation zones.
Understanding these tools gives you greater control over execution quality, cost efficiency, and risk management in perpetual contract trading.
By integrating these advanced order types into your routine, you position yourself to react smarter and faster — turning volatility into opportunity.