Order Types
AZX provides a comprehensive set of order types and execution options designed to support both active trading strategies and advanced risk management. All orders interact with the central order book and are subject to margin availability, risk limits, and liquidation rules described in later sections.
Orders may be used to open new positions, increase existing positions, partially close positions, or fully exit positions.
Limit Orders
A limit order allows a trader to specify the exact price at which they are willing to buy or sell a perpetual contract.
A buy limit order executes at the specified price or lower.
A sell limit order executes at the specified price or higher.
Limit orders can be used to open positions, increase position size, or partially or fully close an existing position.
Immediate Matching Behavior
When a limit order is submitted, the matching engine evaluates whether executable liquidity exists on the opposite side of the order book.
If there are existing orders priced better than or equal to the submitted limit price, the limit order will immediately match against those orders. In this case, execution occurs at the best available tradable price, and the order is classified as a taker order. Taker fees apply to the executed portion.
Order Book Placement
If no matching orders exist at the specified price level, the limit order is placed into the order book as a maker order. The order remains open until it is fully executed or manually canceled.
Maker orders increase market depth and liquidity. When a maker order is eventually executed, maker fees apply.
Market Orders
A market order is an instruction to immediately buy or sell a specified quantity at the best available prices in the order book.
Market orders guarantee execution as long as sufficient liquidity exists. However, the execution price cannot be guaranteed and may vary depending on market depth, volatility, and order size.
Market orders are commonly used when rapid execution is required, such as during fast-moving or highly volatile market conditions.
Trigger Orders
Trigger orders allow traders to submit conditional orders that activate only when a predefined trigger price is reached.
When placing a trigger order, users must specify:
Trigger price
Order quantity
Order type upon trigger (market or limit)
Price reference source
The trigger price may reference:
Mark Price
Last Traded Price
Index Price
Once the selected reference price reaches the trigger level, the system automatically submits the predefined order using the specified parameters.
Take-Profit and Stop-Loss Orders
Take-profit (TP) and stop-loss (SL) orders are automated risk management tools designed to close positions when predefined price conditions are met.
A stop-loss order limits potential losses by closing a position when the market moves unfavorably. A take-profit order locks in gains by closing a position when a favorable price level is reached.
One-Sided and Dual-Sided Configuration
Users may configure:
One-sided TP or SL
Dual-sided TP and SL simultaneously
When both take-profit and stop-loss orders are set, execution of one order automatically cancels the other. Required margin or position size is reserved in advance to ensure reliable execution.
Time-in-Force Options
AZX supports multiple time-in-force options that control how long an order remains active.
Good-Til-Canceled (GTC)
GTC orders remain active until they are fully executed or manually canceled by the user.
Fill-or-Kill (FOK)
FOK orders must be executed immediately and in full at the specified price or better. If full execution is not possible, the entire order is canceled. Partial execution is not allowed.
Immediate-or-Cancel (IOC)
IOC orders attempt immediate execution at the specified price or better. Any unfilled portion is canceled, while the filled portion is executed.
Post-Only Orders
Post-only orders ensure that a limit order is placed into the order book as a maker order only.
If a post-only order would immediately match with existing orders, it is automatically canceled. If no immediate match exists, the order is posted to the order book and will incur maker fees if executed.
Trailing Stop Orders
A trailing stop order is a dynamic risk management order that adjusts its trigger price as the market moves favorably.
Trailing stop orders are designed to:
Limit downside risk
Protect unrealized profits
Allow positions to remain open during favorable market trends
Trailing Stop Parameters
To configure a trailing stop order, users must define the following parameters.
Callback Rate
The callback rate defines the maximum allowable price retracement from the most favorable observed price before the order is triggered.
The callback rate:
Is expressed as a percentage
Can typically be set between 0.1% and 10%
Activation Price
The activation price defines the price level at which the trailing logic becomes active.
If no activation price is specified, the trailing stop becomes active immediately using the current market price as the initial reference.
The reference price used depends on the selected trigger type.
Trailing Stop Trigger Conditions
For a buy trailing stop order:
Activation Price ≥ Lowest Observed Price
Rebound Percentage ≥ Callback Rate
For a sell trailing stop order:
Activation Price ≤ Highest Observed Price
Rebound Percentage ≥ Callback Rate
Once triggered, the system submits the predefined order at the prevailing market price.
Trailing Stop vs Stop-Loss
Stop-loss orders use fixed trigger prices and require manual adjustment. Trailing stop orders automatically adjust as the market moves, providing greater flexibility and improved profit protection in trending markets.
Order Execution Summary
All order types on AZX interact with the same matching engine and order book. Execution behavior depends on available liquidity, order parameters, and market conditions. Margin is reserved as necessary to ensure execution reliability and risk integrity.
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