Spot trading and contract trading are two different trading methods. The key differences are:
Trading Asset:
Spot Trading: Users buy and sell actual digital assets (e.g., BTC, ETH) and can store them in their wallets.
Contract Trading: Users trade contracts that derive value from digital assets instead of owning them directly.
Leverage and Risk:
Spot Trading: No leverage, lower risk, and users are only exposed to asset price fluctuations.
Contract Trading: Uses leverage to amplify profits, but also increases risk, with the possibility of liquidation.
Profitability:
Spot Trading: Users only profit when the asset price increases.
Contract Trading: Users can profit from both rising and falling markets (long and short positions).
Trading Duration:
Spot Trading: No expiration date; users can hold assets indefinitely.
Contract Trading: Some contracts have expiration dates (e.g., futures contracts), while perpetual contracts do not.
Bityi USDT Contract Trading Order Types
Bityi USDT contract trading offers three order types:
1. Market Order
A market order allows users to execute a buy or sell order immediately at the best available market price.
Notes:
A single market order cannot exceed 100,000 USDT; otherwise, the order will fail.
Each contract has different market order quantity limits, which may be adjusted based on market conditions.
Example: If BTC’s latest price is 26,000 USDT, a user who wants to buy BTC instantly can use a market order, specifying the quantity. The order will be executed immediately (though there may be delays in volatile conditions), with an average fill price around 26,000 USDT.
2. Limit Order
Users must set their desired price and order quantity. A limit order specifies the highest price a user is willing to buy or the lowest price they are willing to sell. The system matches orders based on price priority and time priority.
Two execution mechanisms for limit orders:
Post Only (Maker-Only):
The order will not execute immediately, ensuring the user remains a Maker.
If the order would execute immediately, it is canceled.
Immediate-Or-Cancel (IOC):
The order will be executed as much as possible, and any unfilled portion will be canceled.
3. Conditional (Trigger) Order
A conditional order allows users to set a trigger price, order price, and quantity. Once the market price reaches the trigger price, the system automatically places a limit order.
Parameters:
Trigger Price: The price at which the order is activated.
Order Price: The limit price at which the order is placed after activation.
Quantity: The number of contracts to order when triggered.
Notes:
Only contracts in active trading status support conditional orders.
Order quantity must meet contract-specific restrictions.
Before triggering, funds and positions are not frozen. They are only locked when the order is placed.
If the available position is less than the order quantity when a close position order triggers, the order will be adjusted accordingly.
If the market is highly volatile, the order may fail to trigger or execute.
If the order price exceeds the market’s allowed limits, the order will fail.
Once triggered, the order behaves like a normal limit order, meaning execution depends on market conditions.