Binance Futures Order Types Explained (With Examples) — Malaysia Guide

Order Types Overview

Binance futures offers several order types. Understanding each one is essential for effective trading.

1. Market Order

Fills immediately at the best available price.

• Use when: You need to enter/exit NOW
• Fee: Taker fee (0.05%, or 0.04% with referral)
• Downside: May get slippage on large orders

2. Limit Order

Fills only at your specified price or better.

• Use when: You want a specific entry/exit price
• Fee: Maker fee (0.02%, or 0.016% with referral)
• Downside: May never fill if price doesn’t reach your level

3. Stop Market Order

Triggers a market order when price reaches your stop price.

• Use for: Stop-losses
• How it works: Price hits stop → market order executes
• Downside: Slippage possible during volatile moves

4. Stop Limit Order

Triggers a limit order when price reaches your stop price.

• Use for: Stop-losses with price control
• How it works: Price hits stop → limit order placed at limit price
• Downside: May not fill if price moves through your limit

5. Take Profit Market/Limit

Same as stop orders but for profit-taking.

• TP Market: Guaranteed fill at market price
• TP Limit: Fill at your price or better

6. Trailing Stop Order

Moves your stop-loss as the price moves in your favor.

• Use for: Locking in profits while letting winners run
• Callback rate: The percentage of pullback that triggers the stop
• Example: 2% callback on a long → stop moves up as price rises, triggers if price drops 2% from peak

7. Post-Only Order

Only places maker orders. If the order would be a taker, it’s rejected.

• Use for: Ensuring you always pay maker fees
• Fee: Always maker fee (lowest)

Order Strategy for Beginners

1. Entry: Limit order (lower fees)
2. Stop-loss: Stop market (guaranteed fill)
3. Take-profit: TP limit (save on fees)

Pro Tip: OCO Orders

OCO (One-Cancels-the-Other) lets you set both a take-profit and stop-loss simultaneously. When one triggers, the other is automatically cancelled.