What are advanced limit orders?

Limit orders are good till canceled. These orders remain open until they're either filled or canceled by the trader. An advanced limit order is a type of limit order that includes additional conditions. Advanced limit orders could be Post only, fill or kill, or immediate or cancel.

Post only

Post only limit orders are executed only if they don't immediately match with existing orders in the market. They add liquidity to the market, and the user becomes the market maker*.

*A market maker provides liquidity to the market by placing an order that is not immediately matched, whereas a taker places an order that is immediately matched by an existing order, reducing liquidity in the market. Typically, the trading fees for a maker would be less compared to a taker of the same tier. More details on OKX trading fees can be found here.

Example: If the current market price is $100, a Post only buy order priced at $90 will enter the order book. When a Post only buy order priced at $110 matches with an existing order, the order will be canceled.

If the current market price is $100, a Post only sell order priced at $110 will enter the order book. Whereas a Post only sell order priced at $90 may match with an existing order, the order will be canceled.

Fill or kill (FOK) and Immediate or cancel (IOC)

A Fill or Kill order requires the entire order to be executed immediately, or it will be canceled. For Immediate or Cancel orders it must be executed immediately, and any unfilled portion of the order will be canceled.

Example: If the current market price is $100, and lowest priced sell order is $101 with 10 quantity. A Fill or Kill buy order priced at $101 with 10 or fewer quantity will be filled. But if the Fill or Kill buy order has 11 or more quantity, it will be canceled.

An Immediate or Cancel buy order priced at $101 with 10 quantity will be filled immediately. However, an Immediate or Cancel buy order priced at $101 with 30 quantity will be partially filled at 10 quantity, and the remaining 20 quantity will be canceled.

Disclaimer:

THIS ARTICLE IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY. IT IS NOT INTENDED TO PROVIDE ANY INVESTMENT, TAX, OR LEGAL ADVICE, NOR SHOULD IT BE CONSIDERED AN OFFER TO PURCHASE OR SELL OR HOLD DIGITAL ASSETS. DIGITAL ASSET HOLDINGS, INCLUDING STABLECOINS, INVOLVE A HIGH DEGREE OF RISK, CAN FLUCTUATE GREATLY, AND CAN EVEN BECOME WORTHLESS. YOU SHOULD CAREFULLY CONSIDER WHETHER TRADING OR HOLDING DIGITAL ASSETS IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION. PLEASE CONSULT YOUR LEGAL/TAX/INVESTMENT PROFESSIONAL FOR QUESTIONS ABOUT YOUR SPECIFIC CIRCUMSTANCES.