BBO Orders

What is BBO?

BBO (Best Bid Offer), also known as the best bid price, is a type of limit order. It allows traders to quickly set a limit order price that matches the current best bid or ask price, potentially achieving a better counterparty price and faster order execution. When placing a BBO order, the order automatically adjusts to the price at the specified position in the order book.

How do BBO orders work?

When you place a BBO order, the order 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.

Differences Between BBO Orders and Regular Limit Orders.

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.

How is BBO different from other order types?

1. BBO orders:

- Dynamic pricing: BBO orders dynamically adjust to the best-available bid or ask price at the time of order placement.

- 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.

2. 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.

3. 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 USDT & inverse contracts.

How to place BBO orders:

Switch to Limit order

1. In the limit order menu (between Limit and BBO), select BBO.

2. Select your preferred option, such as Counterparty 1 or Queue 1.

3. 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:

1. Post-only

2. Reduce-Only

3. IOC

4. FOK

BBO cannot be used in any of the above scenarios.