Post-Only Orders: Spot & Futures Platform Availability.

Post-Only Orders: Spot & Futures Platform Availability

Post-only orders are a powerful tool for traders, particularly those focused on market making or minimizing slippage. They ensure your order *always* adds liquidity to the order book, rather than taking liquidity. This article will break down what post-only orders are, how they function on both spot and futures markets, and how they’re implemented across popular exchanges like Binance and Bybit. We’ll also highlight what beginners should prioritize when using this order type.

What are Post-Only Orders?

Traditionally, when you place a limit order, the exchange will attempt to match it with existing orders in the order book. If a match is found, your order is *executed* – you’re taking liquidity. If no match is found, your order remains in the order book, *providing* liquidity.

A post-only order, however, explicitly instructs the exchange to only accept your order if it can be added to the order book as a limit order. If your order would immediately match with an existing order (taking liquidity), it will be rejected. This is crucial for strategies that benefit from being a maker, rather than a taker.

• Why use post-only orders?*

• **Reduced Fees:** Many exchanges offer lower fees for makers (those adding liquidity) compared to takers (those removing liquidity). Using post-only orders guarantees you’ll receive the maker fee discount.
• **Market Making:** Post-only orders are fundamental to market making strategies, where traders profit from the spread between the bid and ask prices.
• **Slippage Control:** By ensuring your order isn’t immediately filled, you have more control over the price at which you enter or exit a position, potentially reducing slippage – the difference between the expected price and the actual execution price.
• **Order Book Influence:** Strategically placed post-only orders can influence the order book and potentially manipulate price direction (though this requires significant volume and understanding).

Spot vs. Futures: Availability & Considerations

Post-only orders are available on both spot and futures markets, but their application differs.

• **Spot Markets:** In spot trading, post-only orders are typically used by those looking to provide liquidity, earn maker fee rebates, or execute large orders with minimal price impact.
• **Futures Markets:** Futures trading, characterized by leverage and perpetual contracts, sees even more sophisticated use of post-only orders. Traders use them for strategies like grid trading, hedging, and arbitrage. Understanding the nuances of futures contracts is crucial before using post-only orders. Resources like How to Choose the Right Futures Contracts for Beginners can provide valuable insight. The popularity of crypto futures stems from opportunities like these; read more about it here: Why Crypto Futures Are Popular Among Traders.

Platform Comparison: Binance & Bybit

Let's examine how post-only orders are implemented on two leading exchanges: Binance and Bybit.

Binance

• **Order Types:** Binance offers a dedicated "Post Only" order type within its limit order placement interface. This is the simplest and most direct approach.
• **Interface:** When placing a limit order, you'll find a checkbox labeled "Post Only." Ticking this box guarantees your order will only be added to the order book.
• **Fees:** Binance has a tiered fee structure for both spot and futures. Maker fees are significantly lower than taker fees. Utilizing the "Post Only" option consistently will result in substantial fee savings, especially for high-volume traders.
• **Advanced Features:** Binance allows you to specify a "Time in Force" for your post-only orders (e.g., Good Till Cancelled, Immediate or Cancel).
• **Futures Specifics:** Binance Futures offers post-only orders with similar functionality to the spot market. It’s essential to understand the margin requirements and liquidation risks associated with leveraged futures trading.
• **Beginner Prioritization:** Beginners on Binance should start with small order sizes and thoroughly understand the order book before using post-only orders. Focus on understanding the fee structure and how maker fees differ from taker fees.

Bybit

• **Order Types:** Bybit also provides a “Post Only” option within its limit order interface. However, Bybit has a more nuanced approach with its "Order Fill Settings."
• **Interface:** Bybit’s interface allows you to select “Post Only” or adjust the “Fill or Kill” setting to ensure only limit orders are placed. The "Fill or Kill" setting, when disabled, essentially functions as a post-only order.
• **Fees:** Bybit’s fee structure is also tiered, with maker rebates available. The maker rebate percentage increases with trading volume.
• **Advanced Features:** Bybit offers advanced order types like "Reduce Only" (specifically for futures) which are related to post-only in that they prioritize adding liquidity.
• **Futures Specifics:** Bybit is renowned for its robust futures trading platform. Post-only orders are widely used by professional traders on Bybit Futures. Learning how to trade crypto futures on MEXC can provide a foundation of knowledge applicable to Bybit: How to Trade Crypto Futures on MEXC.
• **Beginner Prioritization:** Beginners on Bybit should familiarize themselves with the "Order Fill Settings" and understand how they impact order execution. Start with smaller positions and practice using post-only orders in a simulated trading environment before risking real capital.

Platform Comparison Table

Feature	Binance	Bybit
Post-Only Order Type	Dedicated checkbox	"Post Only" option & "Fill or Kill" setting adjustment
Interface Simplicity	Very Simple	Slightly more complex due to "Fill or Kill" setting
Fee Structure	Tiered with maker rebates	Tiered with maker rebates
Advanced Order Types	Time in Force options	"Reduce Only" order type
Futures Support	Yes	Yes
Beginner Friendliness	High	Medium
Order Book Visualization	Good	Excellent

Other Platforms

While Binance and Bybit are prominent examples, many other exchanges offer post-only order functionality. Here's a brief overview:

• **OKX:** Offers a "Post Only" option similar to Binance.
• **Kraken:** Supports post-only orders through its advanced order settings.
• **Bitget:** Provides a dedicated "Post Only" order type, especially strong in its futures offering.
• **MEXC:** As detailed in How to Trade Crypto Futures on MEXC, MEXC also supports post-only orders, with a focus on providing comprehensive futures trading tools.

Important Considerations for Beginners

• **Order Book Depth:** Before placing a post-only order, analyze the order book depth at your desired price level. A shallow order book might mean your order is filled quickly if there's a sudden price movement.
• **Price Impact:** Large post-only orders can still have a price impact, especially in less liquid markets.
• **Time in Force:** Choose the appropriate "Time in Force" setting. "Good Till Cancelled" (GTC) will keep your order active until filled or cancelled, while "Immediate or Cancel" (IOC) will cancel any portion of the order that isn't immediately filled.
• **Slippage Tolerance:** Understand your acceptable slippage level. Post-only orders don't eliminate slippage entirely, but they give you more control.
• **Practice in Simulated Trading:** Before using post-only orders with real money, practice in a simulated trading environment to gain experience and understand how they work in different market conditions.
• **Understand Futures Risks:** If trading futures, thoroughly understand leverage, margin requirements, and liquidation risks. Post-only orders don’t mitigate these risks.

Conclusion

Post-only orders are a valuable tool for traders seeking to reduce fees, engage in market making, and control slippage. While the core concept remains consistent across platforms, the implementation details and user interfaces vary. Beginners should prioritize understanding the basics of order books, fee structures, and the specific features of their chosen exchange. By starting small, practicing diligently, and continually learning, you can effectively incorporate post-only orders into your trading strategy. Remember to always manage risk and never trade with more than you can afford to lose.

Recommended Futures Trading Platforms

Platform	Futures Features	Register
Binance Futures	Leverage up to 125x, USDⓈ-M contracts	Register now
Bitget Futures	USDT-margined contracts	Open account

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