CoinCatch Futures Scaled orders

1. Definition of Scaled Orders

Scaled orders are a type of batch order that breaks a single large order into multiple smaller orders, each set at different price levels. As the market price fluctuates, the smaller orders are executed sequentially, ultimately completing the full order.

 

2. Use Cases for Scaled Orders

• Bulk Trading:
  Scaled orders are commonly used for large transactions to minimize market impact and reduce opening costs. By splitting a large order into multiple smaller ones, traders can conceal their actions and avoid being exploited by counterparties.

• Bottom-Fishing with Scaled Orders:
  When the market is expected to approach a bottom but the exact price is uncertain, scaled orders can be placed across various lower price levels. This helps achieve the goal of accumulating positions near the bottom in a staggered manner.

• Top-Selling with Scaled Orders:
  Similarly, when the market is anticipated to reach a peak, scaled orders can be distributed across multiple higher price levels. This allows for staggered selling at the top, maximizing profits from peak levels.

3. Advantages of Scaled Orders

• Reduced Slippage:
  Scaled orders split large transactions into smaller ones, helping to avoid sudden price swings and slippage caused by sharp market fluctuations.

• Enhanced Execution Control:
  By using scaled orders, you can adjust the order size and timing based on market conditions, taking advantage of short-term volatility while maintaining control over execution.

• More Entry Points:
  Scaled orders allow you to enter the market at multiple price levels, covering a wide price range. This can optimize trading outcomes and help you more accurately capture market trends.

4. How to Use Scaled Orders

Scaled orders can be found in the drop-down menu under order types on the trading panel.

• Lowest Price: The lower limit of the price range for the scaled order.
• Highest Price: The upper limit of the price range for the scaled order.
• Number of Orders: The number of split orders to be placed.
• Total Quantity: The total volume allocated to the scaled order.
• Size Distribution: The method of distributing the total volume, with three options: Equal, Increasing, and Decreasing.
   
  • Flat: The quantity is evenly distributed across all price levels.
  • Ascending: The quantity increases as the price rises.
  • Descending: The quantity decreases as the price rises.

5. Notes on Directly Executed Orders with Scaled Orders

When using scaled orders, if the set price exceeds the counterparty’s price, the order may be executed immediately. On the order confirmation page, orders that will be directly executed will be clearly marked. Please note that these orders will be executed instantly.