A scaled order is an advanced algorithmic trading strategy designed to execute large orders efficiently while minimizing market impact. By breaking down a big order into smaller sub-orders placed at incremental price levels, traders can avoid triggering extreme volatility and maintain better control over execution prices.
How Scaled Orders Work
Scaled orders operate on a simple yet powerful principle:
- For buys: Sub-orders are placed at progressively lower prices as the market declines
- For sells: Sub-orders execute at higher prices as the market rises
This approach offers three significant benefits:
- Reduced slippage by preventing large single orders from moving the market
- Better price control through strategic order distribution
- Diversified entry points across a target price range
Types of Scaled Order Distribution
Bybit offers four flexible distribution methods for scaled orders:
| Distribution Type | Description | Best Use Case |
|---|---|---|
| Flat/Evenly Split | Equal order size and price spacing across all sub-orders | Neutral market outlook with expected range-bound movement |
| Increasing | Order size or price increments grow geometrically | Bullish bias with expectation of upward momentum |
| Decreasing | Order size or price increments shrink geometrically | Bearish bias with expectation of downward movement |
| Custom | Fully adjustable distribution to match unique strategies | Advanced traders with specific entry requirements |
Key Parameters for Scaled Orders
- Order Count: 2-20 sub-orders
- Price Range: Must contain all sub-order prices
- Size Limits: Each sub-order within maximum order size limits
- Percentage Rules: Each sub-order between 0.01%-100% of total
Practical Example: ETH Short Position
Let's examine a real-world scenario:
Parameters:
- Asset: ETHUSDT
- Position: Short
- Current Price: 1,550 USDT
- Total Size: 1,000 ETH
- Sub-orders: 10 (100 ETH each)
- Price Range: 1,600-1,780 USDT
- Increment: 20 USDT
Execution Flow:
- First order executes at 1,600 USDT
- Subsequent orders trigger every +20 USDT
- Final order fills at 1,780 USDT
- Average execution price: 1,690 USDT
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How to Place Scaled Orders on Bybit
Step-by-Step Guide
Access Trading Interface
- Log in to your Bybit account
- Navigate to Derivatives trading
Select Contract
- Choose your desired trading pair
Open Scaled Order Panel
- PC: Tools → Scaled Order
- Mobile: Trade → Order Type → Scaled Orders
Set Parameters
- Define price range (upper/lower bounds)
- Input total quantity
- Select order count (2-20)
Choose Distribution
- Select from Flat, Increasing, Decreasing, or Custom
- Adjust price/size percentages as needed
Review & Submit
- Verify all details
- Confirm order submission
Note: Some limit orders may fill immediately if market prices are favorable.
FAQ: Scaled Orders Explained
Q: What's the minimum order size for scaled orders?
A: The minimum is 10x the standard minimum order size for the contract (e.g., 0.01 BTC for BTCUSDT).
Q: Can I cancel individual sub-orders?
A: Yes, you can modify or cancel specific sub-orders through the Current Orders tab.
Q: How does Bybit handle partial fills?
A: Unfilled portions remain active until canceled or until the price reaches their levels.
Q: Are scaled orders suitable for all market conditions?
A: They work best in ranging or moderately trending markets, not during extreme volatility.
Q: What's the advantage over simple limit orders?
A: Scaled orders provide better price averaging and reduce market impact versus single large orders.
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Remember: Successful traders combine smart order types with disciplined risk management. Scaled orders offer professional-grade execution tools for sophisticated position building.