What Is the Spot Scaled Limit Order Feature and How to Use It?

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What is the Spot Scaled Limit Order Feature?

The Spot Scaled Limit Order Feature enables users to break down large spot trades into multiple smaller sub-orders, which are executed in stages according to preset conditions. This method minimizes the market impact and trading costs typically associated with placing a single large order. By allowing trades to be managed in alignment with market price fluctuations, it offers users increased flexibility to adapt their trading strategies effectively.

When to use the Spot Scaled Limit Order Feature?

• When you need to split a large trade into multiple smaller sub-orders to be executed in stages based on preset conditions.
• When you want to reduce the market impact caused by placing a large order all at once and control your trading costs.
• When you seek greater trading flexibility to adjust your strategy according to market price fluctuations.

Parameters and restrictions of the Spot Scaled Limit Order Feature??

• The number of scaled limit order feature sub-orders must be between 2 and 50.
• Allocation method for Spot Scaled Limit Order Feature order types:
  • Fixed: The amount allocated to each order is the same.
  • Descending: The amount allocated to each order is sorted in descending order.
  • Ascending: The amount allocated to each order is sorted in ascending order.

• Each sub-order’s quantity must comply with the trading parameters. Both every individual sub-order and the total sum of all sub-orders must strictly adhere to these Trading Parameters.

How are the price and quantity for each sub-order feature type decided?

• The order price interval is calculated by subtracting the lowest price from the highest price, then dividing the result by the number of orders minus one. Finally, round the calculated value to the nearest smallest price unit (tick size).

Examples:

Let’s look at examples for different Spot Scaled Limit Order Feature order types:

• Fixed: Order Quantity = Size (Token Quantity) / Number of Orders
  • Price Interval = (30,000 - 20,000) / (5 - 1) = 2,500
• Order Quantity = 0.5 / 5 = 0.1
   

• Descending/Ascending: Order Quantity = Size (Token Quantity) * (Order Number / Sum of Order Numbers)
  • Number of Orders = User-defined number of orders
  • Order Number = Order number in the order of placement
  • Sum of Order Numbers: Cumulative order number
• Ascending:
  
  • Price Interval = (30,000 - 20,000) / (5 - 1) = 2,500
  • Order Quantity #1 = 0.5 * (1 / 1 + 2 + 3 + 4 + 5) = 0.03
  • Order Quantity #2 = 0.5 * (2 / 1 + 2 + 3 + 4 + 5) = 0.07

(...)

• Order Quantity #5 = 0.5 * (5 / 1 + 2 + 3 + 4 + 5) = 0.17

• Descending:
  
  
  • Price Interval = (30,000 - 20,000) / (5 - 1) = 2,500
  • Order Quantity #1 = 0.5 * (5 / 1 + 2 + 3 + 4 + 5) = 0.17
  • Order Quantity #2 = 0.5 * (4 / 1 + 2 + 3 + 4 + 5) = 0.13

(...)

• Order Quantity #5 = 0.5 * (1 / 1 + 2 + 3 + 4 + 5) = 0.03

How to set up the Spot Scaled Limit Order Feature?

1. Log in to your Binance account and go to the spot trading page.

2. Select [Scaled Limit Order Feature] in the order type section, fill in the order details, and click the [Preview] button to review them. After verifying the accuracy of the order feature details, click [Confirm] to submit the order.

3. After the order is successfully placed, you can find the order details in the [Open Order] section. Please note that since Spot Scaled Limit Order Feature sub-orders are regular limit orders, they will be displayed just like standard limit orders.

Frequently Asked Questions