Bybit is a globally popular cryptocurrency exchange, renowned for its user-friendly mobile app and advanced trading platform. It currently holds the position of the world's third-largest exchange by trading share. This guide will focus on one of its core strengths: a versatile suite of order types designed to meet the diverse needs of traders.
We will provide a detailed, step-by-step explanation of how to place the three primary order types on Bybit: Market, Limit, and Conditional orders. Understanding the differences, advantages, and use cases for each is fundamental to developing a successful trading strategy.
Understanding Bybit's Core Order Types
Before diving into the mechanics, it's crucial to understand what each order type does and when to use it.
Market Orders
A market order is an instruction to buy or sell an asset immediately at the best available current market price.
- Definition: Traders set the leverage and contract quantity but cannot set an execution price.
- Execution: The order is filled instantly at the best available price in the order book.
- Key Characteristic: While the order's fulfillment is guaranteed, the exact execution price is not. In fast-moving markets, the final price can differ significantly from the price quoted when the order was placed.
- Fee: Taker fee of 0.075% is applied.
- Best For: Traders who prioritize speed of execution over price certainty, ideal for entering or exiting positions quickly.
Limit Orders
A limit order allows you to set a specific price at which you want to buy or sell.
- Definition: Traders set the leverage, contract quantity, and a specific limit price. The order is executed only when the last traded price reaches this specified limit price.
- Execution: The order is filled at your specified limit price or a better one.
- Key Characteristic: You have control over the execution price, but there is no guarantee the order will be filled if the market never reaches your price.
- Fee: Maker rebate of 0.025% is earned. You effectively receive a fee for providing liquidity to the market.
- Best For: Traders who want precise control over their entry and exit prices and are willing to wait for the market to meet their price.
Important Note on Limit Orders: For a buy (long) limit order to be accepted as a maker order, the limit price must be set below the last traded price. If set above, it will be executed as a market order (taker). Conversely, a sell (short) limit order must be set above the last traded price to be a maker order.
Conditional Orders
A conditional order is an advanced order type that becomes active only when a specific pre-set condition, known as the trigger price, is met.
- Definition: Traders set a trigger condition. Once the last traded price (or index/mark price) hits this trigger price, a pre-configured market or limit order is automatically sent to the order book.
Execution:
- A conditional market order is executed immediately at the best available price.
- A conditional limit order is placed on the order book and will wait to be filled at its specified price.
- Key Characteristic: This allows for automated trading strategies without needing to monitor the charts constantly.
- Best For: Setting stop-loss orders, take-profit orders, or entering trends (breakout trading) automatically.
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How to Place a Limit Order on Bybit
Limit orders are a fundamental tool for any trader. The process is similar for both Inverse Perpetual and USDT Perpetual contracts, with the main difference being the interface navigation.
For Inverse Perpetual Contracts (e.g., BTCUSD)
- Hover over the "Trade" menu and select "Inverse Perpetual" and then your desired pair (e.g., BTCUSD).
- On the trading interface, ensure "Limit" is selected.
- In the price field, enter your desired entry price per coin.
- Input the amount or quantity you wish to trade.
- Click either "Buy/Long" or "Sell/Short" to confirm the order.
For USDT Perpetual Contracts (e.g., BTCUSDT)
- Hover over the "Trade" menu and select "USDT Perpetual" and then your desired pair (e.g., BTCUSDT).
- Follow steps 2 through 5 from the Inverse Perpetual guide above.
How to Place a Market Order on Bybit
Market orders are prized for their execution speed, which is one of Bybit's standout features.
For Inverse Perpetual Contracts (e.g., BTCUSD)
- Navigate to your desired Inverse Perpetual trading pair.
- On the trading interface, select "Market."
- Input the quantity you wish to buy or sell. The price field will not be available, as the order will execute at the best available market price.
- Click either "Buy/Long" or "Sell/Short" to confirm the order. It will be executed instantly.
For USDT Perpetual Contracts (e.g., BTCUSDT)
- Navigate to your desired USDT Perpetual trading pair.
- Follow steps 2 through 4 from the Inverse Perpetual guide above.
How to Place a Conditional Order on Bybit
Conditional orders are powerful for risk management and automated strategy execution. A common use case is setting a stop-loss order.
Example Scenario: You have a long position opened at $30,000 per BTC. You want to set a stop-loss order to sell if the price drops to $25,000 to limit your losses.
Here’s how to set it up:
- On the trading interface, select "Conditional."
- Choose "Market" for guaranteed execution (or "Limit" for price control, with the risk of non-execution).
- Select the trigger price source: "Last Traded Price," "Index Price," or "Mark Price." For most cases, "Last Traded Price" is standard.
- In the trigger price field, enter your stop-loss price (e.g.,
25,000). - Input the quantity you want to sell (e.g., your entire position).
- Click "Sell/Short" to confirm the conditional order.
Now, if the last traded price hits $25,000, Bybit will automatically send a market sell order for your specified quantity.
Key Considerations for Conditional Orders
- Execution Risk with Limits: If you choose a conditional limit order, it may not fill if the market price gaps through your limit price. For crucial stop-loss orders, a conditional market order is often safer as it guarantees execution.
- Use Conditional, Not Basic Limit Orders: If you try to set a stop-loss using a standard limit order at a price better than the current market price, it will execute as a market order immediately. Always use the "Conditional" tab for these advanced orders.
Frequently Asked Questions
Q: Why didn't my limit order on Bybit get filled?
A: A limit order is only executed when the market price reaches your specified price. If the market price never touches your limit price, the order will remain open and unfilled. This is the trade-off for controlling your entry/exit price.
Q: What are the fees for different order types on Bybit?
A: Bybit employs a maker-taker fee model. Market orders (Taker) incur a 0.075% fee. Limit orders (Maker) that provide liquidity to the order book earn a 0.025% rebate.
Q: What is the difference between the trigger price types?
A:
- Last Traded Price: The price of the most recent trade on Bybit's market.
- Index Price: A composite price derived from major spot markets to prevent market manipulation.
- Mark Price: The price used to calculate unrealized PnL and trigger liquidations. Using Mark Price for triggers can help avoid unnecessary liquidation due to short-term price volatility.
Q: Can I use conditional orders on the mobile app?
A: Yes, the Bybit mobile app provides full functionality for placing and managing all order types, including conditional orders, allowing you to manage your trades on the go.
Q: Is there a risk of slippage with market orders?
A: Yes, especially in highly volatile market conditions. A market order guarantees execution but not price, so the final filled price may be different from the quoted price at the moment of order placement.
Q: How do I choose between Inverse and USDT Perpetual contracts?
A: Inverse contracts (BTCUSD) are quoted and margined in the base cryptocurrency (e.g., BTC). USDT Perpetual contracts (BTCUSDT) are quoted and margined in USDT, a stablecoin pegged to the US dollar. USDT contracts are generally simpler for beginners as they isolate your PnL from the volatility of the base currency.