BTC Markets has introduced two new advanced features for limit orders. These included time-in-force orders and a post-only option for limit trades. Below, we explore these new features in more detail.
Time-in-force orders let traders control the amount of time an order is active before it is either executed or expires. There are three time-in-force orders being introduced which are explained below.
To find out how to use time-in-force with our API please read our documentation.
Good till cancelled (GTC)
GTC is the default order type if not specified when placing a trade. GTC orders will remain active until they are either filled or cancelled by the user who placed it.
Immediate or cancel (IOC)
IOC orders are used to buy or sell a digital asset, and will execute either the full order, or a portion of an order and then will cancel any unfilled portion.
Possible results of an IOC order will be either fully matched, partially matched, cancelled or partially cancelled.
For example, a trader places an IOC order on the BTC/AUD market to buy 1 Bitcon. The order is placed, and immediately buys 0.7 BTC by matching with another order on the orderbook. The remaining 0.3 BTC portion of the initial order is now cancelled.
Fill or kill (FOC)
A FOC order will, once placed, fill the whole order immediately at the time of placement or it will be cancelled. Traders can us this order type to buy or sell specific amounts of digital assets at a specified price.
For example, if a trader wants to buy an order of 3 BTC at $11,870, they place a FOC order. If there isn’t a sell order for exactly 3 BTC at $11,870 then the order will be immediately cancelled.
If there is a sell order for 3 BTC but at $11,871 then the order will also be cancelled.
FOC orders can only be filled in their entirety, or they are cancelled (killed).
When the post-only option is set to true when a trade is placed, the order will only be posted to the order book if it does not result in a trade taking place. This option is primarily used by market makers and liquidity providers.
For example, if a trader places a trade and part of it triggers the result of a trade, the whole order will be cancelled.
If the trade results in no trades, then the order will go onto the orderbook and no liquidity will be taken away from the market.
If the post-only option is set to true, it will only be applied to the trade at the time of placement. Post-only can only be applied to limit orders.