Algorithmic Orders on the Binance platform is an advanced feature that allows you to execute trading orders automatically based on predefined strategies, without the need to manually monitor the market all the time.
What is an algorithmic order on Binance?
An order that uses algorithms to execute in a smart way to achieve the best possible price and reduce market impact. This type of order is often used by professional traders.
Types of algorithmic orders on Binance:
1. TWAP (Time-Weighted Average Price):
Divides your large order into several smaller orders over a specified time.
Goal: To reduce the order's impact on the market.
2. Iceberg Order:
Only a small part of the order is shown in the order book, hiding the rest.
Goal: To hide the actual trading volume and avoid manipulation.
3. VP (Volume Participation):
Executes the order based on a percentage of the total trading volume in the market.
Example: "Execute my order at a speed equal to 5% of the current market size."
How to use algorithmic orders on Binance (Spot or Futures):
1. Open the Binance app or website.
2. Go to the professional trading section (Advanced Trade).
3. Choose the pair you want to trade (e.g., BTC/USDT).
4. Next to the order type, click the menu and select "Algorithmic Orders."
5. Choose the algorithm type: TWAP, Iceberg, or VP.
6. Enter the details:
Quantity
Duration
Maximum price (if any)
7. Click "Confirm" to activate the order.
When to use algorithmic orders?
If you want to execute a large order without affecting the price.
If you cannot monitor the market all the time.
To reduce manipulation or tracking by other traders.
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Note:
Algorithmic orders are not available for all pairs.
You must have sufficient balance in your wallet before activation.
Available on the web interface, some in the mobile app.
