Limit orders with follow-up: dynamic real-time price tracking

Limit follow orders are one of the most effective tools for active traders, allowing you to minimize waiting for favorable prices and avoid slippage. This mechanism automatically adjusts your order price in response to market movements, making it especially useful when placing large volumes. Limit follow orders operate on a dynamic tracking principle, where the system continuously adjusts the price to keep your order competitive and ready for execution.

Main advantages of using limit follow orders

When you place limit follow orders, you gain several practical benefits that are not available with standard limit orders.

Fast market entry. Limit follow orders enable traders to quickly take positions by using maker orders instead of more costly taker orders. The system automatically places you at the best available price, reducing wait times for execution.

Minimized slippage. As the market price changes, limit follow orders dynamically update their price, allowing you to get as close as possible to your target level. This is especially critical in high volatility conditions, where a few points difference can significantly impact profitability.

Arbitrage opportunities. Precise tracking of market movements opens prospects for arbitrage between different trading pairs and platforms. Traders can quickly respond to price discrepancies and lock in risk-free profits.

How limit follow orders work

The mechanism operates in two key modes. First, you can set limit orders at the current Ask1 or Bid1 level, and the system will keep the order in the queue at the best price. Second, limit orders can be placed at a fixed distance from the market price—either as an absolute value or as a percentage offset.

The platform continuously monitors market price changes and automatically adjusts your order price, maintaining the specified distance. The system will continue to follow the market until the order is filled, canceled, or the maximum set distance is reached.

Trigger price serves as an additional activation condition. If you specify a trigger, the strategy will only activate when the last trade price reaches that level. This automates market entry under certain conditions.

Maximum follow distance is a critical parameter. It can be set as a numerical value or a percentage. Once the market moves beyond this distance, the order stops following and is fixed at the current price.

First scenario: Following the best Ask1/Bid1 price

In this mode, limit follow orders are not tied to a strict distance from the market. Instead, the order continuously tracks the best available bid or ask price, updating its own price with each improvement until it is filled or canceled.

For example, a trader places a limit buy order for 20,000 ABC tokens at Bid1 = 0.00123 USDC. They set two constraints: maximum follow distance = 0.00005 USDC and maximum order price = 0.00128 USDC.

As the market price rises, the limit orders follow it:

When the distance exceeds the maximum allowed, the limit orders stop moving upward and are fixed at the set boundary.

Second scenario: Fixed offset from the market

Limit orders can also be placed with a constant offset from the market price—for example, 2.5% below the current quote for a buy order. When the price improves, the order can move closer to the market, but if the price worsens, limit orders automatically move deeper into the order book.

Example: a trader places a limit buy order for 1,000 ABC with a 2.5% offset from the market price of 0.00120 USDC. The target order price = 0.00120 × (100% − 2.5%) = 0.00117 USDC.

In this scenario, limit orders track the market, maintaining the specified percentage offset.

System restrictions and requirements for limit follow orders

The platform enforces several rules for managing limit follow orders:

• Each user can place no more than one limit follow order per trading symbol in each direction (buy or sell).
• The maximum number of different symbols with active limit follow orders is 10.
• The total number of active limit follow orders per UID must not exceed 20.
• Minimum distance from the market price: 0.01%; maximum: 10%, with two decimal places.
• By default, all limit follow orders operate in Post Only mode to execute as maker orders.
• During high volatility, if limit follow orders are rejected five times in a row due to Post Only restrictions, the strategy will be automatically canceled.