A Post-only order is specifically designed for Limit or Conditional Limit Orders, ensuring they are added exclusively to the order book as maker orders. It guarantees that your order won't immediately execute and will contribute liquidity to the market. If the system detects an immediate trade, it automatically cancels the order to prevent execution. This order type is favored by traders aiming to earn maker fees and contribute liquidity to the market.
Enabling the post-only limit order option ensures the limit order will be added to the order book and not match a pre-existing order. If your order would otherwise match with a pre-existing order, it will be canceled.
Post-Only Limit Order ensures that you will pay the maker fee instead of the taker fee.
If you submit a limit order with POST Only, you must be sure of the following things:
- if it is a sell order, it must be above the best bid price
- if it is a buy order, it must be below the best ask price
Otherwise, it will be canceled.
When the trigger condition (price) is met, a limit order is submitted. If the order price is equal to or smaller than the best bid price for a short order, the order will be filled immediately unless "post-only" is ticked. The executed price will be the best bid price. When the trigger condition is met, but the order price is higher than the best bid price, the order will be added to the order book where it will wait to be filled. Only when the best ask price increases to your order price and the counterparty places a market order to match your order, it will be filled.
