Order Types Overview
Understanding different order types helps you trade more effectively on Predicta.Limit Orders
Limit orders allow you to set a specific price you’re willing to pay or accept.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
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
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
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
Market Orders
Market orders fill immediately at the current market price.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
Advantages
- Speed: Instant execution
- Certainty: Guaranteed to fill (if market is active)
- No Waiting: Get into/out of position immediately
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
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
Order Matching
How Orders Match
The Predicta matching engine finds compatible orders:- Same Side Trades: BUY orders match with SELL orders on the same side
- Cross-Side Trades: BUY YES can match with BUY NO at complementary prices
- Price Compatibility: Prices must be compatible for matching
- Quantity Matching: Matches available quantities
Matching Priority
Orders are matched based on:- Price: Better prices match first
- Time: Earlier orders match first (at same price)
- Quantity: Available quantity determines match size
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
Order Status
OPEN
Order placed, waiting to be matched.- Funds reserved in suspense
- Order visible in order book
- Can be cancelled
- Waiting for matching order
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
FILLED
Completely filled, trade complete.- All shares matched
- Funds moved from suspense
- Shares added to portfolio (buy) or removed (sell)
- Order complete, cannot cancel
CANCELLED
Order cancelled, funds returned.- Order removed from order book
- Funds returned from suspense to balance
- No shares traded
- Can place new order
Order Strategies
Strategy 1: Limit Order for Entry
- Set limit price below current market
- Wait for price to come to you
- Get better entry price
- Cancel if price moves away
Strategy 2: Market Order for Exit
- You want to exit position quickly
- Use market order for immediate execution
- Accept current market price
- Lock in profit/loss quickly
Strategy 3: Partial Limit Orders
- Place multiple limit orders at different prices
- Some may fill, some may not
- Average your entry/exit price
- More flexible approach
Best Practices
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
For Market Orders
- Use when speed matters
- Check current price before placing
- Understand you may pay slightly more
- Good for small positions
General Tips
- Start with small orders to learn
- Monitor order book depth
- Understand market liquidity
- Don’t place too many orders at once
Order Cancellation
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
How to Cancel
- Go to Orders page
- Find your open order
- Click Cancel
- Funds immediately returned
You can only cancel orders that haven’t been filled. Once filled, trades are final.