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Bulk Exchange supports a variety of order types and options to provide traders with the flexibility needed to execute their strategies effectively. All orders are subject to a pre-flight margin check by the ClearingHouse to ensure sufficient collateral is available before the order is accepted by the matching engine.
Standard Order Types
- Market Order: An order to buy or sell immediately at the best available current price. Market orders prioritize speed of execution and are the most basic way to enter or exit a position.
- Limit Order: An order to buy or sell at a specified price or better.
- A
buy limit order will only execute at the limit price or lower.
- A
sell limit order will only execute at the limit price or higher. Limit orders allow traders to control their entry and exit prices but do not guarantee execution.
Order Options
- Reduce-Only: This is a crucial order modifier used for risk management. A
reduce-only order can only decrease the size of an existing position; it cannot open a new position or increase an existing one. If a reduce-only order would cause the position to flip from long to short (or vice-versa), its size is automatically adjusted to only close the position. This feature is used internally by the LiquidationEngine, which submits reduce-only market orders to systematically and safely close a user’s position during a liquidation event without creating new risk.
