Post-Only Order
A post-only order is a limit-order instruction that prevents the order from immediately taking liquidity from the order book.
✦ Key Insight
It is useful when a trader specifically wants maker execution.
✕ Common Misconceptions
Post-only does not guarantee a favorable fee or a fill; exchange rules and fee schedules vary.
Detailed Explanation
In Practice
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Liquidity
Liquidity describes how easily an asset can be bought or sold in meaningful size without causing a large change in price.
Order book
An order book is a list of open buy and sell orders arranged by price on a trading venue.
Maker vs Taker
Maker and taker describe whether an order adds liquidity to an order book or immediately removes existing liquidity.
Limit order
A limit order instructs a trading venue to buy or sell only at a specified price or better.
Spread
The spread is the difference between the best available bid and ask prices in an order-book market.