Market, Limit and Conditional Orders

Katana Perps supports three primary order categories: market orders, limit orders, and conditional orders. Each serves a different purpose and gives traders varying degrees of control over execution price and timing.

Market Orders

A market order executes immediately at the best available price in the order book. Market orders prioritize speed of execution over price precision — they guarantee that your order will be filled (assuming sufficient liquidity), but the exact fill price depends on the current state of the order book.

Market orders are best suited for situations where getting into or out of a position quickly is more important than achieving a specific price. They always consume liquidity from the order book and are charged taker fees.

Limit Orders

A limit order specifies the maximum price you are willing to pay (for a buy) or the minimum price you are willing to accept (for a sell). The order will only execute at your specified price or better.

If a limit order cannot be filled immediately, it rests on the order book as a passive order until it is either matched by an incoming order or canceled by the trader. Limit orders that rest on the book add liquidity and are charged maker fees when eventually filled.

Limit orders give traders precise control over their entry and exit prices. They are the most commonly used order type for strategies that require specific price levels, such as scaling into a position at predetermined intervals or setting a target exit price.

Conditional Orders (Stop-Loss and Take-Profit)

Conditional orders are inactive until a specified trigger condition is met. Once triggered, they convert into either a market order or a limit order and are submitted to the order book for execution. The two most common types are stop-loss and take-profit orders.

Stop-Loss Orders — A stop-loss order triggers when the market price moves against your position to a specified level. It is primarily used to cap potential losses. For example, if you hold a long position entered at $100, you might place a stop-loss at $95 to automatically close the position if the price drops 5%.

Take-Profit Orders — A take-profit order triggers when the market price moves in your favor to a specified level. It is used to lock in gains at a target price. For example, with the same long position entered at $100, you might set a take-profit at $120 to automatically realize the profit if the price reaches that level.

Conditional orders are essential tools for risk management, allowing traders to define their exit strategy in advance rather than relying on manual intervention.