Scaled orders represent an advanced algorithmic trading technique designed to execute large orders without causing disruptive market volatility or alerting other participants. This method intelligently splits a single large order into multiple smaller sub-orders distributed across a predefined price range, creating a series of strategically placed limit orders with incremental price adjustments.
Key Benefits of Scaled Orders
- Reduced Market Impact: By dividing large orders into smaller chunks, scaled orders prevent sudden price spikes or drops that often occur with bulk executions.
- Improved Price Control: Traders can secure better average entry/exit prices across market fluctuations rather than relying on a single price point.
- Strategic Order Distribution: The approach allows for customized order placement throughout a price range, accommodating various market scenarios.
Types of Scaled Order Distributions
Bybit offers four sophisticated distribution methods for scaled orders:
| Distribution Type | Characteristics | Best Use Case |
|---|---|---|
| Flat Distribution | Evenly splits order quantity and price increments across all sub-orders | Neutral market conditions with expected range-bound movement |
| Increasing Distribution | Order size or price increment grows progressively with each sub-order | Bullish bias with expectation of rising prices |
| Decreasing Distribution | Order size or price increment decreases with each subsequent sub-order | Bearish bias anticipating falling prices |
| Custom Distribution | Fully customizable allocation per sub-order | Advanced strategies requiring specific entry points |
Important Custom Order Parameters
- Sub-order range: 2-20 orders per parent order
- Price bounds must stay within defined range
- Individual order size limits apply
- Percentage allocation constraints (0.01%-100% per sub-order)
- Total allocation must equal 100%
Practical Scaled Order Example: ETHUSDT Contract
Consider this ETH trading scenario:
- Current Market Price: 1,550 USDT
- Total Position Size: 1,000 ETH
Order Structure:
- 10 sub-orders (100 ETH each)
- Flat distribution
- Price range: 1,600-1,780 USDT
- Increment: 20 USDT
Execution would place limit orders at:
1,600 → 1,620 → 1,640 → ... → 1,780 USDT
Result: Average execution price = 1,690 USDT with minimized market impact compared to a single large order.
👉 Master advanced order types to enhance your trading strategy
Step-by-Step Guide to Placing Scaled Orders on Bybit
Access Trading Interface
- Log in to your Bybit account
- Navigate to Derivatives trading section
- Select desired contract
Configure Order Parameters
- PC: Tools → Scaled Order
- Mobile: Trade → Order Type → Scaled Orders
- Set price range boundaries
- Define total order quantity
Customize Execution
- Select number of sub-orders (2-20)
- Choose distribution pattern (Flat/Increasing/Decreasing/Custom)
- Adjust price increments or size allocations
Review & Submit
- Verify all parameters
- Confirm order submission
- Monitor execution in Current Orders tab
Note: Some limit orders may fill immediately if market prices are favorable. The system will prompt for confirmation in such cases.
Frequently Asked Questions
How does a scaled order differ from a standard limit order?
A scaled order is essentially multiple limit orders programmed to execute sequentially based on predefined rules, whereas a standard limit order is a single order at one price point.
What's the minimum order size for scaled orders?
The minimum total quantity equals 10x the standard minimum order size for that instrument. For BTCUSDT, this would be 0.01 BTC (10 × 0.001 BTC minimum standard order).
Can I cancel individual sub-orders within a scaled order?
No, scaled orders function as a single strategic unit. You must cancel the entire scaled order and recreate it with modified parameters if adjustments are needed.
How are fees calculated for scaled orders?
Each filled sub-order incurs standard trading fees based on your account tier and whether it's a maker or taker order, calculated separately per execution.
What happens if the market gaps past my price range?
Any unfilled sub-orders beyond the price range will remain open until either filled, canceled, or expired based on your order duration settings.
👉 Optimize your trading costs with advanced order types
For traders managing substantial positions, scaled orders provide a sophisticated mechanism to enter and exit markets efficiently while maintaining price control. This systematic approach to order distribution helps professional traders execute large volumes without telegraphing their intentions to the broader market.