Post-Only Orders: Futures Platforms & Fee Reduction Tactics
Post-Only Orders: Futures Platforms & Fee Reduction Tactics
Introduction
Trading crypto futures can be incredibly lucrative, but also comes with significant costs – primarily in the form of trading fees. These fees can eat into your profits, especially for high-frequency traders. One powerful, yet often overlooked, tool for reducing these fees is the “post-only” order type. This article will delve into post-only orders, explaining how they work, their benefits, and how they are implemented on popular futures platforms like Binance, Bybit, BingX, and Bitget. We’ll focus on what beginners should prioritize to maximize their savings and improve their trading efficiency. Understanding these concepts is crucial for anyone serious about consistently profitable futures trading.
What are Post-Only Orders?
A post-only order is a type of limit order that guarantees your order will *always* be posted to the order book as a limit order, and *never* executed as a market order. This is the key distinction. Normally, a limit order can be filled immediately if the price is already at or beyond your limit price, effectively becoming a market order. A post-only order prevents this.
Why is this important for fees? Most futures exchanges offer a maker-taker fee structure.
- Taker Fees: Charged when you “take” liquidity from the order book by immediately filling an existing order. These fees are generally higher.
- Maker Fees: Charged when you “make” liquidity by adding an order to the order book that isn't immediately filled. These fees are usually lower, and sometimes even negative (rebates).
By using a post-only order, you are *always* acting as a maker, thus benefiting from the lower maker fee. However, there’s a trade-off: your order might not be filled immediately, or even at all, if the price doesn’t reach your limit price.
Benefits of Using Post-Only Orders
- Reduced Fees: The primary benefit. Consistently paying maker fees instead of taker fees can significantly reduce your overall trading costs, especially with high-volume trading.
- Price Control: You maintain complete control over the price at which your order is filled.
- Avoid Slippage: Slippage occurs when the price at which your order is executed differs from the price you intended to trade at. Post-only orders, being limit orders, minimize the risk of slippage.
- Improved Strategy Execution: For strategies like [How to Trade Futures Using Mean Reversion Strategies], where precise entry points are crucial, post-only orders allow you to set specific prices without the risk of accidental market execution.
Post-Only Order Implementation Across Platforms
Let's examine how post-only orders are implemented on some of the most popular crypto futures platforms:
Binance Futures
- Order Type: Binance Futures offers a dedicated "Post Only" checkbox within the order entry panel. When checked, your limit order will always be a post-only order.
- Fee Structure: Binance has a tiered fee structure based on your 30-day trading volume and VIP level. Maker fees can be as low as -0.025% and taker fees are typically higher.
- User Interface: The interface is relatively straightforward. The "Post Only" option is clearly visible and easy to toggle.
- Considerations: Binance's order book depth is generally very high, increasing the likelihood of your post-only orders being filled.
Bybit Futures
- Order Type: Bybit provides a "Post Only" option within the advanced order settings. You need to navigate to the "Order Type" dropdown and select "Limit - Post Only".
- Fee Structure: Bybit also employs a maker-taker fee model. They frequently offer promotions and fee discounts, so it’s worth checking their current rates.
- User Interface: Bybit's interface is clean and modern, but the "Post Only" option is slightly less prominent than on Binance.
- Considerations: Bybit is known for its fast order execution and competitive fees.
BingX Futures
- Order Type: BingX offers a "Post Only" setting that can be enabled in the order settings menu. It’s a simple toggle.
- Fee Structure: BingX provides a maker-taker fee structure with varying rates depending on your VIP level. They also offer a copy trading feature, which may influence your overall fee strategy.
- User Interface: BingX’s interface is user-friendly, with a focus on social trading features. The post-only option is easily accessible.
- Considerations: BingX is a relatively newer platform, but it’s gaining popularity due to its innovative features.
Bitget Futures
- Order Type: Bitget’s implementation is similar to Bybit. You select "Limit" as the order type and then enable the "Post Only" option within the advanced order settings.
- Fee Structure: Bitget offers a tiered maker-taker fee structure, with potential rebates for high-volume makers.
- User Interface: Bitget’s interface is visually appealing and offers a range of trading tools. The post-only setting is well-integrated.
- Considerations: Bitget is known for its derivative products and its strong focus on risk management.
Comparative Table of Post-Only Order Features
| Platform | Order Type Implementation | Maker Fee (Example) | Taker Fee (Example) | UI Accessibility | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Binance Futures | Dedicated Checkbox | -0.025% | 0.075% | High | Bybit Futures | Advanced Order Settings (Limit - Post Only) | -0.025% | 0.075% | Medium | BingX Futures | Order Settings Toggle | -0.02% | 0.06% | High | Bitget Futures | Advanced Order Settings (Limit - Post Only) | -0.025% | 0.075% | Medium |
Important Considerations for Beginners
- Order Book Depth: Post-only orders are most effective on exchanges with high liquidity (deep order books). A deep order book increases the likelihood of your limit order being filled.
- Volatility: In highly volatile markets, your post-only orders may be less likely to be filled, as the price can move rapidly past your limit price.
- Time Horizon: Post-only orders are generally better suited for traders with a longer-term time horizon or those employing specific strategies that require precise entry points.
- Partial Fills: Your post-only order may be partially filled. Be aware of this and adjust your position size accordingly.
- Testing and Practice: Before using post-only orders with real capital, practice with a demo account to understand how they work and how they affect your trading strategy.
- Fee Tier: Understand your fee tier on each exchange. Higher trading volume often unlocks lower fees, making post-only orders even more beneficial.
- Strategy Alignment: Post-only orders are particularly effective when combined with strategies like mean reversion ([How to Trade Futures Using Mean Reversion Strategies]), where you are looking to capitalize on price deviations from the average. They can also be useful when trading volatility indices ([How to Trade Futures on Volatility Indices]), allowing for precise entry based on anticipated volatility changes.
- Seasonality: For certain futures contracts, like agricultural futures ([The Role of Seasonality in Agricultural Futures]), understanding seasonal patterns can help you strategically place post-only orders to take advantage of predictable price movements.
Advanced Tactics
- Iceberg Orders: Combine post-only orders with iceberg orders (hidden orders) to minimize market impact and avoid revealing your full order size.
- Automated Trading Bots: Integrate post-only orders into your automated trading bots to automatically execute trades at optimal prices and minimize fees.
- Conditional Orders: Utilize conditional orders (OCO – One Cancels the Other) in conjunction with post-only orders to manage risk and maximize potential profits.
Conclusion
Post-only orders are a powerful tool for reducing trading fees and improving the efficiency of your futures trading strategy. While they require a bit more understanding and discipline than simply using market orders, the potential savings can be substantial, especially for active traders. By carefully considering the features and implementation of post-only orders on different platforms like Binance, Bybit, BingX, and Bitget, and by prioritizing the key considerations outlined in this article, beginners can unlock a significant advantage in the competitive world of crypto futures trading. Remember to practice, test, and adapt your strategy based on your individual trading style and market conditions.
Recommended Futures Trading Platforms
| Platform | Futures Features | Register |
|---|---|---|
| Binance Futures | Leverage up to 125x, USDⓈ-M contracts | Register now |
| Bitget Futures | USDT-margined contracts | Open account |
Join Our Community
Subscribe to @startfuturestrading for signals and analysis.