What are the order execution types and how do they work?

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Execution types are buy or sell orders for crypto and fiat (BTC/MXN or BTC/ETH, for example). Each order type executes the trade in a different way. Bitso enables the four most common trading execution types: 

  • Good Till Cancelled
  • Fill or Kill
  • Immediate or Cancel
  • Post Only

Understanding these four trade executions is a crucial step toward successful crypto trading and lets investors create and automate a precise and successful trading strategy. These orders act upon specific conditions, which make them useful tools in turbulent financial markets.

 

In Bitso Alpha, you can access Execution types by clicking the “More options” button under either the “Limit” or “Stop Limit” Order types.

 

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After typing the amounts you wish to buy/sell, select one of these four execution types from the drop-down menu.

 

Good 'till Cancelled

A Good 'till Cancelled (GTC) order is placed to buy or sell crypto or fiat either until the order is filled or the trader cancels it. At Bitso, these orders can stay active indefinitely and are executed only when the price condition is met. These are often meant to be long-term strategies to help automate trading.

This is the default execution type if you do not choose to adjust these options.

GTC orders are typically used with stop orders to either buy when prices drop or sell when prices rise to specific values. This limits risk and allows you to execute trades without the need to watch the market all day, every day. When the pricing condition is met, we immediately complete the trade and notify you.

 

Fill or Kill

A Fill or Kill (FOK) order is meant to be either fully executed (i.e. buy everything requested in the order) or canceled immediately if unable to fulfill. This all-or-nothing approach is the fastest way to ensure you either buy or sell your crypto asset completely. If your specific conditions aren’t met, the trade is simply canceled.

This execution type is used to ensure your order is completed as quickly as possible, so you receive the full benefit of the trading price. For example: if you want to buy 1 BTC at 15,000 USD fairly immediately, and no fewer than $15,000, a FOK order should be placed. This will ensure you get 1 BTC at a specified price instead of waiting for it to climb out of your buy range.

 

Immediate or Cancel

Like FOK, an Immediate or Cancel (IOC) order lets a trader either buy or sell crypto immediately. However, unlike FOK, IOC orders may be partially fulfilled, canceling the rest.

This means if you’re looking to buy 1 BTC at the current price, but there’s only 0.80 available at your chosen price, the IOC order will buy the 0.80 and immediately cancel the request so the remaining 0.20 isn’t purchased at an inflated price.

 

Post Only

The Post Only (PO) type of execution ensures that the order, if it is registered in the books, will be executed as "Maker", which means a lower commission. Conversely, without the PO execution type, the order could be executed as Taker, which means a higher commission.


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