What are Open Orders on Binance?

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Why do I have open orders on Binance? Why my orders are not executed immediately? If this is your case, let me explain the logic behind those orders.

What is an Open Order?

It is usually an un-filled or working order that is to be executed when an, as yet, the unmet requirement has been met before it is canceled by the customer or expires. The customer has the flexibility to place an order to buy or sell a security that remains in effect until their specified condition has been satisfied.

Open orders, sometimes called ‘backlog orders’ can arise from many different order types.

Because they are often conditional, many open orders are subject to delayed executions since they are not market orders. Sometimes, a lack of market liquidity for particular security could also cause an order to remain open.

In other words, the time when the order is processed depends on the original type of order you selected for trading.

What types of orders are available?

All orders can be grouped into Market Orders and Limit Orders.

  • Market Orders

A market order is an order to quickly buy or sell at the best available current price. Since market orders are executed right away, your market buy order will match the cheapest limit sell order available on the order book.

Market orders are handy in situations where getting your order filled is more important than getting a certain price. This means that you should only use market orders if you are willing to pay higher prices and fees caused by the slippage. In other words, market orders should only be used if you are in a rush.

  • Limit Orders

A limit order is an order that you place on the order book with a specific limit price. Where you set the limit price. It means that when you place a limit order, the trade will only be executed if the market price reaches your limit price (or better).

The limit order will only execute if the market price reaches your limit price. If the market price doesn’t reach the price you set, the limit order will remain open.

When will my order be completed?

As you can see, the open orders are usually limit orders to buy or sell, buy stop orders, or sell stop orders. These orders basically offer investors a bit of latitude, especially in price, when entering the trade.

The investor is willing to wait for the price that they set before the order is executed. The investor can also choose the time frame that the order will remain active for the purpose of getting filled. If the order does not get filled during that specified duration then it will be deactivated and said to have expired.

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While market orders, which cannot have restrictions, are typically filled instantaneously or canceled. There are rare instances when market orders remain open till the end of the day at which time the brokerage will cancel them.

How to open an order on Binance?

Here is your quick guide to open order on Binance:

  1. Create an account using our referral link to get a life-long discount for your trading fees. Even if you already have an account, you can still create a new one and transfer your funds from the old one in order to get access to up to 45% kickback.
  2. Fund your new account.
  3. Start trading by opening the order of your choice (market or limit).
  4. Your limit order will be placed on the order book, with a small yellow arrow. While your market order will be completed instantly.

Summing Up

Open orders are a part of the normal exchange workflow if you select a limit-order. It takes some time to find a matching request to complete your order on Binance. No worries, just give it some time to find your best price.