Binance Futures Order Types Explained (With Examples)

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.