A scaled order is an algorithmic trading strategy designed to execute large orders without causing significant market volatility or influencing participant behavior. This method splits a substantial order into multiple smaller sub-orders, placed as limit orders at incrementally adjusted prices within a predefined range.
Key Benefits of Scaled Orders
- Reduced Slippage: Mitigates price impact by breaking down large orders.
- Execution Control: Adjusts order size/timing based on market conditions.
- Diversified Entries: Enables entries at varied price levels for better trade outcomes.
How Scaled Orders Work
Bybit offers four distribution types for scaled orders:
| Distribution Type | Description | Use Case |
|--------------------|-----------------------------------------------------------------------------|-------------------------------------------|
| Flat | Evenly splits order size and price increments. | Neutral market expectations. |
| Increasing | Sub-order size/price ascends geometrically. | Bullish bias. |
| Decreasing | Sub-order size/price descends geometrically. | Bearish bias. |
| Custom | Manual configuration of price/order size variance. | Strategy-specific requirements. |
Requirements:
- Sub-orders: 2–20 per scaled order.
- Each sub-order must stay within price range and max order size.
- Size distribution: 0.01%–100% per sub-order; total must equal 100%.
Practical Example: ETHUSDT Short Position
Parameters:
- Total size: 1,000 ETH
- Order count: 10 (100 ETH/sub-order)
- Price range: 1,600–1,780 USDT
- Increment: 20 USDT
Execution:
10 limit orders are placed sequentially (1,600 USDT, 1,620 USDT, etc.). Average fill price: 1,690 USDT.
👉 Master Scaled Orders with Bybit’s Advanced Tools
Submitting a Scaled Order on Bybit
- Navigate: Derivatives trading page → Select contract.
- Access Tool: PC: Tools → Scaled Order; App: Trade → Order Type → Scaled Orders.
Configure:
- Price range and total quantity (min/max: 10x standard order size).
- Order count (2–20).
- Select Distribution: Even split, increasing/decreasing, or custom.
- Submit: Review and confirm. Filled orders appear under Current Orders.
FAQs
Q1: Can scaled orders trigger immediate fills?
A: Yes, if market prices surpass sub-order limits.
Q2: What’s the minimum order size for BTCUSDT scaled orders?
A: 0.01 BTC (10x standard minimum of 0.001 BTC).
Q3: How does custom distribution work?
A: Manually set price/order size percentages within the 0.01%–100% range.
Q4: Are scaled orders suitable for volatile markets?
A: Yes—they minimize impact and exploit price fluctuations.