Order Types and Algos in CoveTrader

CoveTrader offers the following order types:

  • Market
  • Limit
  • Bounded Market
  • Limit Top

Market Order

Market orders are used when the user wants certainty of execution and is not price sensitive. The order will be filled immediately against the best prices available in the order book.

Limit Order

Limit orders are used when the user only wants to execute at a certain price or better. However, the order is not guaranteed to execute. Note that limit orders placed through the best available price in the book will execute at the best available price. E.g. Market has an 11 offer available. If customer enters bid with limit of 15, the order will generally execute at 11, not 15.

Bounded Market Order

Bounded Market orders are for users who want: (1) High certainty of execution, and (2) Limited risk of bad execution price. A Bounded Market order will be sent as a Limit order with a price equal to True Price +/- Bounded Market Depth percentage (addition for a buy order, subtraction for a sell order). Bounded Market Depth is set to 1% by default and is configurable in settings. The limit price will be visible in the order ticket and will update real-time.

Example: The market in BTC-USD is 9,999 at 10,001 and True Price is 10,000. Withe a 1% bounded depth, a buy order will be sent with a limit price of 10,100, while a sell order will be sent with a limit price of 9.900. The exchanges will deliver you the best available price from the order book that is at or inside of the limit price. So you get the same execution as you would with a market order, but without the risk of trading too far away.

Limit Top Order

Limit Top order are for users who want: (1) To avoid paying higher take fees, (2) To trade at the best market price, and (3) Quick order entry. A Limit Top order will be sent at a price equal to the best price in the order book at that time. Unlike standard limit orders, no price input is required from the user. For example, if you are a buyer, it will enter a limit order at the best bid in the order book and place it in the order book. The order will remain there in-line with your Time-In-Force (TIF) selection or until executed.

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