# Order Types
**Basic Order Types**
* Market Order: Executes immediately at the current market price.
* Limit Order: Executes at a specified price or better.
* Stop Market Order: Becomes a market order once the asset reaches the chosen stop price. Commonly used to limit losses or secure profits.
* Stop Limit Order: Becomes a limit order once the stop price is hit.
* Scale Order: Places a series of limit orders across a defined price range.
* TWAP (Time-Weighted Average Price): Splits a large order into smaller chunks, executed every 30 seconds to minimize market impact. Each suborder is limited to a maximum slippage of 3%.
***
**TWAP Mechanics**
* The TWAP algorithm targets execution based on elapsed time relative to total order duration.
* A new suborder is placed every 30 seconds.
* If early suborders don’t fill due to low liquidity or wide spreads, later suborders will increase in size (up to 3x the standard size) to catch up — while still respecting the 3% slippage cap.
* Like regular market orders, TWAP suborders won’t execute during post-only periods (e.g. during network upgrades).
***
**Additional Order Options**
* Reduce Only: Ensures the order only reduces an existing position, never increases or flips it.
* Good Til Canceled (GTC): Stays active on the order book until filled or manually canceled.
* Post Only (ALO): Adds the order to the book without matching immediately — ensures maker-only execution.
* Immediate or Cancel (IOC): Executes all or part of the order immediately; cancels any unfilled portion.
* Take Profit (TP): Triggers a market order when the target price is reached, helping lock in gains.
* Stop Loss (SL): Triggers a market order when the price hits a specified loss threshold, limiting downside.
> TP and SL orders are typically used to automate trade exits. You can customize the trigger price, limit price, and the portion of your position to be affected.
### What is TWAP?
TWAP (Time-Weighted Average Price) is an order execution strategy that breaks a large order into smaller trades, executed at regular intervals over a set duration.
Instead of placing one large order that may impact price, TWAP helps smooth execution, reducing slippage and market impact.
***
#### How TWAP Works
1. Order Size – The user specifies the total amount to buy/sell.
2. Duration – The time over which the order will be executed.
3. Intervals – The order is split into smaller chunks, executed evenly at each interval.
4. Execution – Orders are placed automatically until the total size is filled.
For example: Buying 100 ETH over 1 hour with 12 intervals means the system executes \~8.33 ETH every 5 minutes.
***
### Reduce-Only Mode
When Reduce-Only is enabled:
* The TWAP will only reduce your current position.
* It prevents the strategy from flipping your position (e.g., closing a long and accidentally opening a short).
* If no position exists, no orders are executed.
This ensures TWAP is used strictly for scaling out, not scaling in.
***
### Randomize Mode
When Randomize is enabled:
* The system slightly varies the size and/or timing of each order.
* This makes execution less predictable and harder to track.
* Helps mitigate predatory algorithms or bots attempting to anticipate TWAP orders.
Example: Instead of executing exactly 10 ETH every 5 minutes, the bot may execute 8.5 ETH, then 11.2 ETH, with timing offsets of a few seconds.
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