The BBO (Best Bid Offer) feature is designed to help you execute your trades faster and more efficiently. In a fast-moving market, manually entering a limit price can mean you miss your opportunity. BBO solves this potential problem.
BBO simplifies your trading by automatically setting your limit price for you. On Toobit Futures, this means you can instantly place an order that matches a top price level (like Top 1 or Top 5) directly from the order book.
By using BBO, your order is placed at a price where trading is already happening, increasing the likelihood of a quick and successful execution.
How do BBO orders work?
Toobit's BBO feature simplifies your trading by automatically setting a competitive limit price.
Instead of typing a price, you simply select an option which correlates to a price level directly from the live order book. This ensures your trade is placed instantly at that range, helping it execute faster and more reliably.
Let’s look at how each BBO option works:
- Counterparty 1:
For a buy order, your price is set to the lowest current ask price.
For a sell order, your price is set to the highest current bid price.
- Queue 1:
For a buy order, your price is set to the highest current bid price.
For a sell order, your price is set to the lowest current ask price.
- Counterparty 5:
For a buy order, your price is set to the 5th-lowest ask price.
For a sell order, your price is set to the 5th-highest bid price.
- Queue 5:
For a buy order, your price is set to the 5th-highest bid price.
For a sell order, your price is set to the 5th-lowest ask price.
By instantly matching a live price from the order book, you don't need to type in a price with a BBO order. This makes it perfect for traders who want to act quickly and stay in sync with the current market.
How is a BBO order different from other order types?
When you place a trade, choosing the right order type is key. BBO (Best Bid Offer) orders automatically adjust the order price based on your selected order book level at the time of placement, rather than requiring a manually entered price.
In other words, it combines the speed of market orders with the price control of limit orders, giving you a powerful and flexible way to trade.
1) BBO orders:
BBO orders are designed for speed and control. Instead of manually typing a price, you simply choose a competitive price level from the order book, and your order is placed instantly. This ensures you're always acting on live market data.
This also gives you more control over partial fills. If only part of your order is filled, the rest of it remains at your chosen price, preventing the system from chasing a less favorable price, which can happen with market orders.
2) Non-BBO limit orders:
A standard limit order gives you full price control. You manually enter the exact price at which you are willing to buy or sell.
Your order will only be filled if the market reaches your specified price or better. It will not adjust to market movements.
3) Market orders:
A market order is the fastest way to buy or sell. It executes your trade immediately at the best price currently available on the market.
You have no control over the final price. In a fast-moving or low-liquidity market, your order might get filled at several different prices, resulting in a less favorable average price than you expected.
4) What makes BBO unique:
The key advantage of a BBO oder is that it gives you the perfect balance of speed and control.
- Smarter than a market order: Instead of just taking any price, a BBO order lets you target a specific competitive price on the order book, protecting you from major slippage.
- Faster than a limit order: Instead of waiting for the market to come to your price, you are actively placing an order where the market already is, greatly increasing your chances of a quick execution.
This adaptability makes BBO orders especially powerful in fast-moving markets, allowing you to react quickly without giving up control over your entry or exit price.
How to use BBO?
Supported order type: BBO orders are currently only available for Futures limit orders.
How to place a BBO order:
To place a BBO Limit order, simply select your desired price level—such as Counterparty 1, Counterparty 5, Queue 1, or Queue 5.
Once you click [Open Long] or [Open Short], the system automatically uses that level to place your order instantly.
Important considerations for BBO orders
1. In fast-moving markets: Prices can change in the split second between when you place your order and when it executes. This means your final execution price might be different from what you initially saw.
2. In low-liquidity markets: When there are fewer buyers and sellers, the gap between buying and selling prices (the "spread") can be wide. This may cause the best available price to be further from the last traded price than you expect.
3. Potential for slippage: As with any online trade, a tiny delay (latency) between placing your order and its execution can sometimes result in slippage, where the final price shifts slightly. This is more common in highly volatile markets.
We're always here to help. If you have any questions or feedback about this feature, please don't hesitate to reach out to our team through our dedicated Support Center.
Thank you for your trust and support.
Toobit Team
2025-06-24
X: https://x.com/Toobit_official
Telegram: https://t.me/Toobit_EN
Discord: https://discord.com/invite/vvxTuGTz
YouTube: https://www.youtube.com/@Toobit_official
Reddit: https://www.reddit.com/r/toobit/
Facebook: https://www.facebook.com/toobitofficial
Medium: https://medium.com/toobit-exchange