📑Trading
Last updated
Last updated
How to Trade on Bitoro’s Perpetual Futures Market on Injective
Bitoro is a premier decentralized crypto exchange that supports both spot and perpetual futures markets. In spot markets, traders can only profit when the value of an asset increases. However, through futures contracts, you can profit in both directions as the value of an asset rises or falls.
A perpetual market is a type of futures contract that allows you to buy or sell an underlying asset without an expiry date. You can trade perpetual markets on BitoroPro through the trading page interface.
Let’s assume you have some USDT in your Trading Account, and you believe that the BTC price in USDT will rise.
Step 1: Select a Perpetual Futures Market to Trade
On Bitoro, click Trade > Perpetual from the main navigation bar.
Choose the perpetual futures market you want to trade, such as BTC/USDT PERP in this example.
Step 2: Make a Trade on Bitoro's Perpetual Futures Market
Choose the side you want to trade on. In this case, it will be Buy (Long) since you believe that BTC price will rise. Otherwise, select Sell (Short) if you think the price will go down.
Then choose the type of order you want to trade: Market, Limit, or more advanced types like Stop-Market and Stop-Limit.
Market orders are executed at the current market price.
Limit orders allow you to place an order at a specified price.
Stop-Limit orders are conditional orders that will automatically place a limit or market order when the mark price hits the trigger price specified by the user.
More advanced order types like stop-market and stop-limit are also available in perpetual futures markets. Refer to sections below if you would like to learn more about how conditional and other advanced orders work.
Next, enter the amount you wish to trade.
There are four percentage numbers (25%, 50%, 75%, and 100%) shown next to the Amount field, indicating the selected percentage of your funds for the order. You can either choose a percentage or simply input a desired number as the amount to trade. You can also use the leverage slider to select your desired leverage.
Submit the order and approve it with your connected wallet. Once the order is submitted and approved successfully, you will see a notification: "Your order has been placed."
Step 3: Check Your Trade Activity
You can always check your trade activity on Bitoro at the bottom of the trading page or on the Activity > Derivatives Orders page, including open orders, triggers, order history, and trade history.
The Open Orders section shows orders that have not been executed completely yet. You can click the cancel button if you need to cancel your order.
The Triggers section shows all your active conditional orders.
The Order History section displays a record of your filled and canceled orders.
The Trade History section only shows orders that have been filled.
How to Trade on Bitoro’s Spot Market on Injective A spot trade is a transaction of buying or selling assets at the current market rate, known as the spot price. You can make spot trades on Bitoro through the trading page interface.
Let's assume you have some USDT in your Trading Account, and you would like to trade for some INJ.
Step 1: Select a Spot Market to Trade On Bitoro, click Trade > Spot from the navigation bar.
Choose the spot market you want to trade on, which is INJ/USDT in this example.
Step 2: Make a Spot Trade on Bitoro
Choose the type of order you want to place, either a Market or Limit order.
Market orders are executed at the current market price. For example, if you order 1 INJ at the market price, this order should be immediately filled at the market price. If you want to buy at a price lower than the market price or sell at a price higher than the market price, choose a Limit order. Next, enter the amount you want to trade.
There are four percentage options (25%, 50%, 75%, and 100%) next to the Amount field, indicating the percentage of your funds to allocate for the order. You can either choose a percentage or simply input a desired number as the amount to trade. Click on Buy or Sell, submit your order, and approve it with your connected wallet.
Once the order is submitted and approved successfully, you will see a notification stating "Your order has been placed".
Step 3: Check Your Trade Activity
You can always check your trade activity on Bitoro at the bottom of the trading page or on the Activity > Spot Orders page. This includes open orders, order history, and trade history.
The "Open Orders" section shows the orders that have not been executed completely yet. You can click the cancel button if you need to cancel your order. The "Order History" section displays a record of your filled and canceled orders. The "Trade History" section only shows orders that have been filled.
Bitoro supports various order types for spot and derivatives trading, allowing you to tailor your trading strategies and trade efficiently. Let's explore two fundamental order types:
Market Order
A market order is ideal for instant buying or selling at the current market price. On Bitoro, market orders are executed immediately at the best available price, with any unfilled portion automatically cancelled (i.e., immediate-or-cancel). These orders remove liquidity from the order book, typically incurring higher fees for market takers, as is the case on BitoroPro.
Limit Order
A limit order allows you to buy or sell at a specific price. Placed in the order book with a designated limit price, the order will only execute if the market price reaches the specified limit price or better. Unlike market orders, which execute immediately at the market price, limit orders provide more control over the execution price.
Limit orders may be filled at different prices to fulfill the order amount:
Sell limit orders fill when the market price equals or exceeds the limit price.
Buy limit orders fill when the market price equals or falls below the limit price.
Conditional orders (such as stop-limit and stop-market orders) automatically place limit or market orders when the mark price hits the user-specified trigger price. Traders use these orders to manage losses or secure profits, saving time by automatically entering or exiting the market.
Conditional Orders on Bitoro
To simplify your trading experience on Bitoro, our system automatically detects the appropriate order type based on whether you are buying or selling and by comparing the trigger price and the current mark price.
When placing a conditional order, the system determines whether it's a stop-loss or take-profit order, allowing users to focus on the trigger price. Conditional orders will only be triggered if the trigger price is different from the current mark price at the time of order placement, preventing immediate triggering.
The post-only option ensures that a limit order will only be placed if it's eligible to enter the order book and won't execute immediately. It serves as an additional feature to complement limit orders in trading.
Post-only orders function as maker orders on the order book and do not match with existing resting orders. If a post-only limit order crosses the order book (e.g., a buy order with a limit price higher than the last traded price), it will be immediately rejected upon placement. Maker orders contribute liquidity to the market, and therefore, maker fees will be applied upon execution.
In derivatives trading, the reduce-only option ensures that an order is solely intended to decrease the size of an open position and won't inadvertently create a new position with the opposite direction. It's an additional feature available to complement any of the available order types in derivatives trading.
Market or Limit Order with Reduce-Only Option
For market and limit orders with the reduce-only option, let's examine them based on the following scenarios:
No Open Positions:
If there are no open positions for a given market, the system will automatically reject the placement of any reduce-only market or limit orders.
Reduce-only market or limit orders will also be canceled if all open positions in a given market are closed or liquidated.
With Open Positions:
If there are open positions for a given market, the system will adjust the placement of any better-priced reduce-only market or limit orders based on the current open position size.
This action will also invalidate existing reduce-only orders with worse prices.
Examples:
Assuming a user holds long 10 INJ/USDT PERP and has no open orders:
The user won't be allowed to place reduce-only market or limit buy orders for INJ/USDT PERP.
If the user tries to place a reduce-only market or limit sell order for a size of 11 on the short side, it will be automatically adjusted to 10.
Assuming a user holds long 10 INJ/USDT PERP and has a reduce-only limit sell offer at a price of $2.50 for a size of 6:
If the user places a reduce-only limit sell offer at a price of $2.40 for a size of 7, the $2.50 reduce-only offer will be canceled.
Similarly, if the user places a reduce-only limit sell offer at a price of $2.40 for a size greater than or equal to 10, the $2.50 reduce-only offer will be canceled, and the new reduce-only offer will be adjusted to a size of 10.
Conditional Order with Reduce-Only Option
Conditional orders, specifically stop-market and stop-limit order types, also support the reduce-only option.
If there are no open positions, open market, or limit orders for a given market, the system will automatically reject the placement of any reduce-only conditional orders.
There's no limitation on the aggregate quantity of reduce-only conditional orders, and the system will only validate them when triggered (i.e., when the mark price hits the trigger price).
Examples:
Assuming a user does not hold any position and doesn't have any open limit or market orders for a given market:
The user will not be able to place a reduce-only conditional order.
Assuming a user holds long 10 INJ/USDT PERP and has no open orders:
If the user places a reduce-only stop-limit sell offer at a price of $2.40 for a size of 7, the order will be accepted.
Similarly, if the user places the same reduce-only stop-limit sell offer for a size of 15, the order will also be accepted without size adjustment.
Assuming a user does not have open positions for INJ/USDT PERP market but has several open regular market or limit orders:
If the user places a reduce-only stop-limit sell offer at a price of $2.40 for a size of 7, the order will be accepted.
Likewise, if the user places the same reduce-only stop-limit sell offer for a size of 15, the order will also be accepted without size adjustment.
Assuming a user holds long 10 INJ/USDT PERP and has a reduce-only stop-limit sell offer at a price of $2.50 for a size of 15:
When the mark price hits the trigger price, the reduce-only stop-limit sell order will be canceled, and a new reduce-only limit sell offer at a price of $2.50 for a size of 15 will be placed. This new reduce-only limit sell offer will then be adjusted to a size of 10 based on the open position size.
What is Slippage?
Slippage refers to the difference between the expected price of an order and the actual price at which the order is executed. For instance, if Alice intends to trade some USDT for INJ and expects to receive 1 INJ but only receives 0.95 INJ upon execution, the slippage in this case is 5%.
Causes of Slippage
Slippage can occur due to:
High market volatility: Sudden price fluctuations between order confirmation and execution.
Low liquidity: Insufficient crypto available at the quoted price to fill the order. Larger orders often experience more significant slippage due to liquidity constraints.
To mitigate the risk of unexpectedly high slippage, Bitoro users can set slippage tolerance for their market and stop-market orders.
What is Slippage Tolerance?
Slippage tolerance represents the maximum acceptable slippage for an order. If the actual slippage exceeds the set tolerance, the order will not be executed.
Benefits and Considerations of Slippage Tolerance
Users should carefully consider their slippage tolerance based on their trading preferences:
High Slippage Tolerance:
Pros:
Increased likelihood of order execution, beneficial for closing positions promptly.
Cons:
Higher risk of unexpectedly high slippage, potentially resulting in order execution at unfavorable prices.
Low Slippage Tolerance:
Pros:
Reduced risk of unexpectedly high slippage, minimizing the chance of order execution at undesirable prices.
Cons:
Greater likelihood of order rejection, which may not be ideal for closing positions promptly.
