Order Types

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Order Types Overview

Understanding different order types helps you trade more effectively on Predicta.

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Limit Orders

Limit orders allow you to set a specific price you’re willing to pay or accept.

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How Limit Orders Work

• Set Your Price: Specify the maximum price you’ll pay (buy) or minimum price you’ll accept (sell)
• Order Book: Your order enters the order book at your specified price
• Matching: Order only fills when someone matches your price
• Partial Fills: Order may fill partially if only some shares match

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Advantages

• Better Prices: You can get better entry/exit prices
• Control: You control exactly what price you pay
• No Surprises: You know your maximum cost upfront

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Disadvantages

• May Not Fill: If price moves away, order may not execute
• Patience Required: May need to wait for price to come to you
• Missed Opportunities: Price might move past your limit

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When to Use Limit Orders

• You want a specific entry/exit price
• You’re patient and can wait
• You think the market will come to your price
• You want to maximize profit on each trade

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Market Orders

Market orders fill immediately at the current market price.

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How Market Orders Work

• Immediate Execution: Order fills right away
• Current Price: You pay/accept the current market price
• Guaranteed Fill: Order always executes (if liquidity exists)
• No Price Control: You accept whatever the market price is

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Advantages

• Speed: Instant execution
• Certainty: Guaranteed to fill (if market is active)
• No Waiting: Get into/out of position immediately

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Disadvantages

• Price Risk: May pay slightly more or receive slightly less
• Slippage: Price might move between order and execution
• Less Control: You don’t control the exact price

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When to Use Market Orders

• You need immediate execution
• Price is moving quickly and you need to act fast
• Small price difference doesn’t matter
• You want guaranteed execution

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Order Matching

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How Orders Match

The Predicta matching engine finds compatible orders:

1. Same Side Trades: BUY orders match with SELL orders on the same side
2. Cross-Side Trades: BUY YES can match with BUY NO at complementary prices
3. Price Compatibility: Prices must be compatible for matching
4. Quantity Matching: Matches available quantities

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Matching Priority

Orders are matched based on:

1. Price: Better prices match first
2. Time: Earlier orders match first (at same price)
3. Quantity: Available quantity determines match size

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Order Book

The order book shows:

• Buy Orders: People wanting to buy at various prices
• Sell Orders: People wanting to sell at various prices
• Best Prices: Highest buy price and lowest sell price
• Depth: How many orders at each price level

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Order Status

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OPEN

Order placed, waiting to be matched.

• Funds reserved in suspense
• Order visible in order book
• Can be cancelled
• Waiting for matching order

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PARTIAL

Partially filled, remaining shares still waiting.

• Some shares have been matched
• Remaining shares still in order book
• Funds for filled portion moved
• Can cancel remaining portion

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FILLED

Completely filled, trade complete.

• All shares matched
• Funds moved from suspense
• Shares added to portfolio (buy) or removed (sell)
• Order complete, cannot cancel

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CANCELLED

Order cancelled, funds returned.

• Order removed from order book
• Funds returned from suspense to balance
• No shares traded
• Can place new order

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Order Strategies

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Strategy 1: Limit Order for Entry

1. Set limit price below current market
2. Wait for price to come to you
3. Get better entry price
4. Cancel if price moves away

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Strategy 2: Market Order for Exit

1. You want to exit position quickly
2. Use market order for immediate execution
3. Accept current market price
4. Lock in profit/loss quickly

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Strategy 3: Partial Limit Orders

1. Place multiple limit orders at different prices
2. Some may fill, some may not
3. Average your entry/exit price
4. More flexible approach

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Best Practices

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For Limit Orders

• Set realistic prices based on market conditions
• Monitor your orders regularly
• Adjust prices if market moves away
• Be patient but not too patient

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For Market Orders

• Use when speed matters
• Check current price before placing
• Understand you may pay slightly more
• Good for small positions

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General Tips

• Start with small orders to learn
• Monitor order book depth
• Understand market liquidity
• Don’t place too many orders at once

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Order Cancellation

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When to Cancel

• Price has moved away from your limit
• You changed your mind about the trade
• Market conditions have changed
• You want to place a new order at different price

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How to Cancel

1. Go to Orders page
2. Find your open order
3. Click Cancel
4. Funds immediately returned

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Next Steps