Advanced Orders Overview

MCS's advanced orders, which offer a greater variety of orders are as follows.

 

Stop Order (Position Open)

A Stop Order, a kind of conditional order, is an order to buy/sell when the price reaches a specified trigger price. When the trigger price is reached, the Stop Order converts to a market or limit order. Stop Orders are often used by traders to gain profits, limit losses or catch positions in the breakout market.

 

<Stop Order Example>

Stop Orders can be well utilized when the trader anticipates that the price will go beyond the resistance or support level (breakout). In case of a breakout, the trigger price of buy and sell orders must be higher or lower than the market price (Last/Index/Mark), respectively.

 

Buy stop

Currently, the BTC/USDT Last Traded Price is 7,000 USDT with a resistance price of 7,500 USDT. David would like to place a buy Stop Order when the price breaks through 7,500 USDT to capture the sudden incline in price. In order to do so, the following steps can be used with Stop Orders.

• Select conditional order and choose whether to use the limit(set price) or market order
• Set the trigger price slightly higher than the resistance price (7,500 USDT);
• Place the position as a long order;
• Once the market price reaches the trigger price, the order placed will be activated as a limit or market order.

 

Sell Stop

Currently, the BTC/USDT Last Traded Price is 7,000 USDT with a support price of 6,500 USDT. David would like to place a short Stop Order when the price breaks through 6,500 USDT to capture the sudden decline in price. In order to do so, the following steps can be used with Stop Orders.

• Select conditional order and choose whether to use the limit(set price) or market order
• Set the trigger price slightly lower than the support price (6,500 USDT);
• Place the position as a short order;
• Once the market price reaches the trigger price, the order placed will be activated as a limit or market order.

*Note: If a Stop Limit Order is used in a volatile market, there lies a possibility that the order may not be executed as the price may have already passed limit price. On the other hand for Stop Market Orders, traders must keep in mind that in a volatile market, it may lead to an undesired average execution price as it takes the best available market price.

 

 

Stop Loss Order (Position Close)

Stop Loss Orders are automatic trade orders given by the trader to trigger a close when a certain price(loss) level is reached to minimize losses. MCS provides a simple close position strategy at the point of position entry to close all open positions with a market order. If the trader desires to close the position partially or with a limit order, the conditional order can be used to place a Stop Loss Limit Order. The Stop Loss Order price is set against the last traded price.

 

There are 3 ways you can set Stop Loss Orders on MCS.

1. When submitting a market or limit order (Only applies to traders without a position)

• One-click setup on the order confirmation window
• Partial closure of position is not allowed
• Will be executed as a market order once the market price on MCS touches the trigger price

2. On the Position List

• One-click setup on the position list
• Partial closure of position is not allowed
• Will be executed as a market order once the market price on MCS touches the trigger price

3. As Conditional Market and Limit Order

• Place an opposite order and set a Stop Loss price
• Partial closure of position is allowed
• Will be executed as a market order once the market price on MCS touches the trigger price
• Check the Close on Trigger option to ensure the Stop Loss can still be executed when there is an insufficient margin

 

 

Take Profit Order (Position Close)

Take Profit Order is a function to close the position when the market price reaches a particular trigger price.

There are 3 ways you can set Take Profit Orders on MCS.

1. When submitting a market or limit order (Only applies to traders without a position)

• One-click setup on the order confirmation window
• Partial closure of position is not allowed
• Will be executed as a market order once the market price on MCS touches the trigger price

 

2. On the Position List

• One-click setup on the position list
• Partial closure of position is not allowed
• Will be executed as a market order once the market price on MCS touches the trigger price

 

3. As Conditional Market and Limit Order

• Place an opposite order and set a stop-loss price
• Partial closure of position is allowed
• Will be executed as a market order once the market price on MCS touches the trigger price

 

 

 

Reduce Only

Reduce Only is an additional option to single position limit orders which can only reduce the contract size and not add to the trader's position. This ensures the prevention of unintentional contract increases due to trading mistakes.

When a Take Profit order is placed, selecting the Reduce Only function prevents the opening of a new position in the opposite direction due to a sudden change in the market price after the position has reached the stop price or has been closed.

 

<Reduce Only Example>

David goes long 1,000 BTC/USDT contracts at 3,000 USDT, while setting a Stop Loss price of 2,500 USDT. David wants to set a target price/partially close at 3,500 USDT.

If the market price changes to the Stop Loss price of 2,500 USDT, and then quickly rises back to 3,500 USDT due to a sudden change in the market, if David did not use the Reduce Only option, the 3,500 USDT limit order would be filled and David would have an unwanted short position. However, if David selected the Reduce Only option, the system will automatically cancel the limit order when the specified price is reached to prevent opening the opposite position.

 

<Caution!>

1. If there are no positions currently open, any Reduced Order Only orders submitted will be rejected by the system, regardless of any other active orders.
2. The "close by limit/market price" function available inside the Position tab has the Reduce-only function embedded by default with the priority of execution. In the event of insufficient margin, active orders with the limit price furthest away, placed in the same direction will be canceled first.
3. If a trader has a long/short position and there are no other active orders, the new Reduce Only long/short order is rejected by the system and the Reduce only long/short contract quantity is automatically adjusted to the contract size of the current position.
4. If you have both positions and other active orders
• Without any existing Reduce-Only order: The contract size of a new reduced-only order plus all active orders placed at a price better than this order cannot have a total contract size larger than the current open position. Otherwise, the contract size of the new order will be automatically reduced or canceled by the system.
• With any existing Reduce-only order: The contract size of a new reduced-only order plus all active orders placed at a price better than this order cannot have a total contract size that larger than the current open position. Otherwise, the reduce-only order with the worst order price will be automatically reduced or canceled by the system.

Close on Trigger

Close on Trigger is an additional option for conditional orders. It is an order to close the position currently held by the trader. When placing the order, it is only possible to reduce the number of position contracts, and if the margin is insufficient, active orders in the same direction with the worst order price is automatically canceled by the system to guarantee the submission of the Stop Loss order.

 

<Close on Trigger Example>

David goes long 1,000 BTC/USDT contracts at 3,000 USDT and has set a Take Profit target of 3,500 USDT. In addition, David wants to set up a Stop Loss/Partial Stop Loss as a conditional market order at 2,500 USDT.

 

1. When David does NOT use the Close on Trigger Option,

Due to a sudden change in the market, if the Last Traded Price reaches the target price of 3,500 USDT first and then falls back to 2,500 USDT, the pre-set 2,500 USDT conditional market order is filled on the assumption that there is sufficient margin. Therefore, David will open an unintended short position since it was targeted for a close. On the other hand, if the Last Traded Price falls to trigger the Stop Loss price of 2,500 USDT first and the system detects that there is insufficient margin to execute it, the stop loss order will be denied.

 

2. When David USES the Close on Trigger Option,

Due to a sudden change in the market, if the last traded price reaches the position target price of 3,500 USDT first and then falls back to 2,500 USDT, the Stop Loss order is rejected as the Close on Trigger option is selected. This prevents David from opening an unintended short position at 2,500 USDT. On the other hand, if the Last Traded Price falls to trigger the Stop Loss price of 2,500 USDT first and the system detects that there is insufficient margin to execute it, active orders with the worst order price placed in the same direction as stop loss will be canceled sequentially until there is enough margin to execute the Stop Loss order.

 

<Caution!>

1. All "Take Profit and Stop Loss" orders in the position have a built-in Close on Trigger function, which is executed with the highest priority.

2. The conditional order can be submitted regardless of the margin requirements, with or without selecting the "Close On Trigger" option. However, when the trigger price of the conditional order is triggered, the system will only then determine if there is sufficient available margin and verify the order requirements to execute the order successfully.

3. When conditional orders with Close on Trigger option is selected,

• Conditional Limit Order:
  
  • When triggered, the system will prioritize order execution based on the order price.
  • The system will determine if the newly triggered conditional limit order plus other active orders that placed at a better price will have a contract size larger than the existing position. If so, the system will automatically reduce/cancel the submitting limit order to ensure it is a closing order. Once confirmed, the system starts checking the margin requirement to execute.
  • When the available margin is insufficient, the system will automatically cancel other active orders placed in the same direction with the worst order prices having priority until sufficient initial margin is available.
  • Orders will be placed into the order book and pending for execution under the Reduce Only mechanism. 

• Conditional Market Order:
  
  • The highest execution priority is equivalent to the stop-loss function set on current positions.
  • The system will determine if the newly triggered conditional market order will reduce the contract size of the existing position. If not, the system will automatically reduce/cancel this conditional order to ensure it is a closing order. Once confirmed, the system starts checking the margin requirement to execute.
  • When the available margin is insufficient, the system will automatically cancel other active orders placed in the same direction with the worst order prices having priority until sufficient initial margin is available.
  • It will be executed at the best available prices in the order book.