BBO user guide

What is BBO?

BBO, also known as best bid offer, is a type of limit order. BBO allows traders to quickly set limit order prices that align with the current Queue 1, Queue 5, Counterparty 1, or Counterparty 5 prices, potentially facilitating faster order execution and better price matching. When a BBO order is placed, it is automatically adjusted to the best available price at the time of order placement.

How does BBO orders work?

When you place a BBO order, the price is determined by the BBO option you select:

Counterparty 1: For a buy order, this would be the lowest current ask price. For a sell order, it would be the highest bid price.
Queue 1: For a buy order, this would be the highest current bid price. For a sell order, it would be the lowest ask price.
Counterparty 5: For a buy order, this would be the 5th lowest current ask price. For a sell order, it would be the 5th highest bid price.
Queue 5: For a buy order, this would be the 5th highest current bid price. For a sell order, it would be the 5th highest ask price.

How is BBO different from other order types?

BBO orders automatically adjust to the best available price at the time of order placement, rather than at a specific price point that you input.

BBO orders:

Dynamic pricing: BBO orders dynamically adjust to the best-available bid or ask price at the time of order placement, such as Queue 1, Queue 5, Counterparty 1 or Counterparty 5.
Partial fulfillment and remaining quantity: If a BBO order is partially filled due to limited availability at the best price, the unfilled portion remains open in the order book at the matched price. This differentiates BBO orders from market orders, as they do not move to the next available price but stay at the initially matched price.

Non-BBO limit orders:

No automatic adjustment at order placement: Unlike BBO limit orders, these orders do not adjust to best bids or asks in the order book automatically when placing orders.

Market orders:

Instant execution at current price: Market orders execute immediately at the current market price, offering no control over the execution price.
Potential for slippage: They can experience slippage, filling at progressively worse prices until the entire order is completed.

How to use BBO?

BBO orders are well suited for spot, futures and TP/SL orders.

How to place BBO orders:

Switch to Limit order
In the limit order menu (between Limit and BBO), select BBO.
Select your preferred option, such as Counterparty 1, Counterparty 5, Queue 1, or Queue 5
Click the Buy or Sell button and the system will place the order accordingly.

Note: BBO is not available if you set TP/SL or when placing any of the following order type:

Post only
IOC
FOK

How to use BBO in limit and stop-limit orders?

When using Batch TP/SL for a futures order, you have the option to select BBO when setting the trigger price. When the TP/SL order is triggered, an order will be placed at the market price corresponding to your BBO option.

In Spot trading's TP/SL mode, you also have the option to select BBO. Upon triggering the BBO TP/SL, an order will be placed at the market price corresponding to your BBO option.