What are the advantages of using a post-only order when trading cryptocurrencies?

3 answers

• Dec 16, 2021 · 3 years ago
  A post-only order is a type of trading order that ensures that your trade is only executed as a maker order, meaning that you will not pay any trading fees. This can be advantageous for active traders who want to minimize their trading costs and maximize their profits. By using a post-only order, you can take advantage of the maker fee rebate offered by some exchanges, which can significantly reduce your trading expenses. Additionally, post-only orders can help maintain liquidity in the market by encouraging other traders to place limit orders, which can improve the overall trading experience for everyone involved.
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• Dec 16, 2021 · 3 years ago
  When you use a post-only order, you are essentially guaranteeing that your order will be added to the order book and not immediately matched with an existing order. This can be beneficial in volatile markets where prices can fluctuate rapidly. By waiting for your order to be added to the order book, you have the opportunity to potentially get a better price for your trade. However, it's important to note that there is a risk that your order may not be filled if there is not enough liquidity in the market. Therefore, it's crucial to carefully consider the market conditions before using a post-only order.
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• Dec 16, 2021 · 3 years ago
  As an exchange like BYDFi, we highly recommend using post-only orders when trading cryptocurrencies. By using a post-only order, you can take advantage of the benefits mentioned earlier, such as avoiding trading fees and potentially getting a better price for your trade. It's a smart strategy for active traders who want to optimize their trading performance. However, it's important to note that the effectiveness of post-only orders may vary depending on the specific market conditions and the liquidity of the cryptocurrency you are trading. Therefore, it's always a good idea to stay informed and adapt your trading strategies accordingly.
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