Possible Reasons for Order Failure When Trading on LBank Futures
Trading in the futures market offers significant opportunities for traders to profit from price movements in various assets. However, traders often encounter challenges in executing their orders successfully. Order failure can be frustrating and costly. In this article, we will explore some of the possible reasons for order failure when trading on LBank Futures and provide insights into how traders can avoid these pitfalls.
1.Insufficient Margin Balance
One of the most common reasons for order failure is having an insufficient margin balance. Margin is the collateral required to open and maintain a futures position. When a trader’s margin balance is too low, they may not have enough funds to support their open orders. This scenario can apply to both limit and market orders, and mostly occur when there are other open orders that share the same margin or when the order amount exceeds the position amount.
To address this issue, traders can consider adding more margin to their account. Additionally, they can adjust the leverage settings to reduce the required margin balance. Lowering the leverage will increase the margin required but can provide more safety for the trader. Alternatively, you can switch to a different margin pool by changing the trading pair.
2.Exceeding Position Size Limits
Each futures contract has specific position size limits, which are determined by the leverage chosen by the trader. Position limits prevent individuals from gaining undue control over markets and prices through ownership or derivatives. While typically unreachable for individual traders, these limits play a vital role in maintaining market stability by preventing manipulation of large traders or groups using derivatives to corner the market.
However, in order to avoid the rare case of exceeding position limits, you need to familiarize yourself with the range of position limits available for the trading pair you are looking to trade.
3.Minimum Notional Value Requirement
Some futures contracts have a minimum notional value requirement. This means that the order value must meet or exceed a specified minimum amount for the order to be accepted. Traders should consult the contract specifications to determine the minimum notional value for the contracts they intend to trade.
4.Reduce-Only Orders
Reduce-only orders enable traders to execute buy or sell orders that exclusively decrease their current positions, without initiating new long or short positions exceeding the current value of their assets. This feature allows for trading without the inherent risk of overexposing one’s existing positions. However, when placing a “reduce-only” if the order is in the same direction as an existing open position, or if the order’s size exceeds the open position, it may be rejected. It is important to consider the impact of using “reduce-only” orders and ensure they align with their trading strategy.
5.High Traffic Volumes
During periods of high trading activity, order submission can become challenging. High traffic volumes can lead to delays and order failures. Traders may encounter a message stating, “We are experiencing high traffic volumes. You may try to submit your order again.” Patience and persistence can be essential during such times.
6.FOK (Fill or Kill) and Post-Only Orders
FOK and Post-Only orders have specific execution requirements. FOK orders must be filled immediately, and if they cannot be, they will be rejected. Post-Only orders must be executed as maker orders; otherwise, they will be rejected. Traders should be aware of these conditions when using these order types.
7.Too Many Open Orders
There is a maximum limit on the number of open orders for each USDⓈ-M symbol on LBank Futures, which is limited to 200, including open conditional orders. Exceeding this limit will prevent traders from placing new orders. Keeping track of open orders and managing them efficiently is crucial to avoid this issue.
8.Excessive Open Conditional Orders
Traders can open a maximum of 10 conditional orders per symbol on USDⓈ-M Futures at any given time. These include Stop, Stop Market, Take Profit, Take Profit Market, and Trailing Stop orders. Exceeding this limit will result in order rejections.
Reasons for Unfilled Orders
In addition to order failures, traders may encounter unfilled orders due to various reasons:
1.No Matching Price
When the market price does not meet the set order price, the order will not be filled immediately. Traders using Stop-limit orders can set trigger prices to ensure their orders are filled when the market reaches their desired price.
2.Deviation from Market Price
If there are no matching orders in the market depth pool at the specified price, the order may remain partially filled. Traders should be aware of this possibility, especially when dealing with large positions.
3.Margin Check Failure (Stop Limit and Stop Market Orders)
For Stop Limit and Stop Market orders, traders must provide trigger prices and filled prices. The system conducts margin checks before placing and filling orders. If the margin balance is insufficient when the order is triggered, it will be marked as expired.
Wrapping Up
Order failure when trading on LBank Futures can be attributed to various factors, including insufficient margin balance, position size limits, order type selection, and market conditions. Traders can enhance their trading experience and reduce the likelihood of order rejection by understanding these factors and taking appropriate actions.
It is crucial for traders to stay informed about the specific rules and limits associated with the contracts they trade and to manage their orders effectively.
Disclaimer: Derivatives are often volatile, and this can be a risky investment. The information provided in this article is solely for educational purposes and shouldn’t be regarded as financial advice.
