To prevent malicious manipulation of market prices and reduce the risk of extreme volatility, Gate has established corresponding restriction mechanisms for both limit orders and market orders on its futures contracts. These measures are designed to protect investors' interests and maintain a healthy, stable market.
Limit Order Price Limit Guidelines
For limit orders, Gate sets price limit ratios that apply only to taker orders; maker orders are not subject to these restrictions. The specific rules are as follows:
Long (Buy) direction: Only the maximum order price is restricted.
Maximum order price = Mark price × (1 + X%);
Short (Sell) direction: Only the minimum order price is restricted.
Minimum order price = Mark price × (1 - X%).
Price limit ratios vary by contract market. Please refer to the Contract Information page.
Example
Using the BTCUSDT contract as an example, assume the current mark price is 50,000 USDT and the maximum deviation ratio for this market is 10%.
Maximum order price for long positions: 50,000 × (1 + 10%) = 55,000 USDT, meaning the order price cannot exceed 55,000 USDT;
Minimum order price for short positions: 50,000 × (1 - 10%) = 45,000 USDT, meaning the order price cannot be lower than 45,000 USDT.
Notes
• Position-reducing orders: The order price must not exceed the bankruptcy price of the position.
• Position-increasing orders: The order price must not exceed the estimated liquidation price of the position.
• Under extreme market conditions, orders may still be liquidated immediately after execution. To reduce risk, consider lowering your leverage before trading.
• Price limit ratios are dynamically adjusted based on market volatility. Please stay updated on contract information.
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Market Order Trading Restrictions
Gate imposes the following restrictions on market orders:
- Maximum slippage for market orders;
- Deviation protection relative to the mark price;
- Maximum order size per market order.
The system calculates the allowable execution price range for market orders based on the order book price, mark price, and corresponding market parameters. Market orders can only be executed within this price range and up to the maximum order size per order.
The deviation protection ratio currently used for market orders is consistent with the limit order price limit ratio for the same market and may be adjusted in the future based on market conditions.
Market Buy Orders
The system calculates both the slippage cutoff price and the mark price ceiling for market buy orders:
Slippage cutoff price = Best ask price × (1 + Maximum market order slippage)
Mark price ceiling = Mark price × (1 + Deviation protection ratio)
The final maximum execution price for a market buy order is:
Buy order matching cutoff price = min(Slippage cutoff price, Mark price ceiling)
The rules are as follows:
- If the buy order matching cutoff price is greater than or equal to the best ask price, the order can enter matching, but the execution price must not exceed the buy order matching cutoff price;
- If the buy order matching cutoff price is lower than the best ask price, it means there are no executable sell orders within the allowable price range in the current order book, and the system will directly reject the market buy order.
Market Sell Orders
The system calculates both the slippage cutoff price and the mark price floor for market sell orders:
Slippage cutoff price = Best bid price × (1 - Maximum market order slippage)
Mark price floor = Mark price × (1 - Deviation protection ratio)
The final minimum execution price for a market sell order is:
Sell order matching cutoff price = max(Slippage cutoff price, Mark price floor)
The rules are as follows:
- If the sell order matching cutoff price is less than or equal to the best bid price, the order can enter matching, but the execution price must not be lower than the sell order matching cutoff price;
- If the sell order matching cutoff price is higher than the best bid price, it means there are no executable buy orders within the allowable price range in the current order book, and the system will directly reject the market sell order.
Maximum Order Size per Market Order
In addition to price restrictions, different contract markets also set a maximum order size for each market order.
During market order matching, the system will stop further matching if any of the following conditions is met:
- The market order matching cutoff price is reached;
- The maximum order size per market order is reached.
Executed portions remain valid, and the remaining unfilled portion will be canceled.
For the maximum market order slippage, deviation protection ratio, and maximum order size per market order in each contract market, please refer to the Contract Information page.
Scenario Examples
Scenario 1: Ask price is significantly higher than the mark price
Assume the current parameters are as follows:
| Parameter | Value |
|---|---|
| Mark price | 90 |
| Best ask price | 100 |
| Maximum market order slippage | 5% |
| Deviation protection ratio | 1% |
Calculations:
Slippage cutoff price = 100 × (1 + 5%) = 105
Mark price ceiling = 90 × (1 + 1%) = 90.9
Buy order matching cutoff price = min(105, 90.9) = 90.9
Since the buy order matching cutoff price of 90.9 is lower than the best ask price of 100, there are no executable sell orders at or below 90.9 in the current order book, so the market buy order will be directly rejected.
Here, 90.9 is not an actual ask price in the order book but the maximum price at which this market buy order is allowed to execute.
Scenario 2: Ask price falls within the allowable execution range
Assume the current parameters are as follows:
| Parameter | Value |
|---|---|
| Mark price | 100 |
| Best ask price | 100.5 |
| Maximum market order slippage | 5% |
| Deviation protection ratio | 2% |
Calculations:
Slippage cutoff price = 100.5 × (1 + 5%) = 105.525
Mark price ceiling = 100 × (1 + 2%) = 102
Buy order matching cutoff price = min(105.525, 102) = 102
Since the buy order matching cutoff price of 102 is higher than the best ask price of 100.5, the market buy order can enter matching but can only execute up to 102. If the order is not fully filled, the remaining portion exceeding the 102 price range will be canceled.
Scenario 3: Bid price is significantly lower than the mark price
Assume the current parameters are as follows:
| Parameter | Value |
|---|---|
| Mark price | 110 |
| Best bid price | 100 |
| Maximum market order slippage | 5% |
| Deviation protection ratio | 1% |
Calculations:
Slippage cutoff price = 100 × (1 - 5%) = 95
Mark price floor = 110 × (1 - 1%) = 108.9
Sell order matching cutoff price = max(95, 108.9) = 108.9
Since the sell order matching cutoff price of 108.9 is higher than the best bid price of 100, there are no executable buy orders at or above 108.9 in the current order book, so the market sell order will be directly rejected.
Here, 108.9 is not an actual bid price in the order book but the minimum price at which this market sell order is allowed to execute.
Scenario 4: Market order reaches the maximum order size
Using the BTCUSDT contract as an example, assume the current order book is as follows, with a maximum market order slippage of 2% and a maximum order size of 120 contracts per market order:
| Order Book Level | Price | Quantity (Contracts) | Cumulative Quantity (Contracts) |
|---|---|---|---|
| Ask 5 | 51,500 | 60 | 210 |
| Ask 4 | 51,000 | 50 | 150 |
| Ask 3 | 50,800 | 40 | 100 |
| Ask 2 | 50,500 | 30 | 60 |
| Ask 1 | 50,000 | 30 | 30 |
| Bid 1 | 49,900 | 10 | 10 |
Assuming the price ceiling calculated based on the mark price deviation protection is no lower than 51,000 USDT:
Slippage cutoff price = 50,000 × (1 + 2%) = 51,000 USDT
If a user submits a market buy order for 200 contracts, the order can execute at prices up to 51,000 USDT, with a maximum of 120 contracts filled.
The order will match against sell orders at the 50,000, 50,500, 50,800, and 51,000 price levels in sequence. Once the cumulative filled quantity reaches 120 contracts, the system stops further matching, and the remaining 80 contracts are automatically canceled.
Important Notes
- If the current best bid/ask price exceeds the allowable execution price range for a market order at the time of submission, the system will directly reject the entire order.
- If the matching cutoff price or maximum order size is reached after the order enters matching, executed portions remain valid and unfilled portions will be canceled.
- The maximum market order slippage, deviation protection ratio, and maximum order size may be dynamically adjusted based on market conditions. Please refer to the Contract Information page for the latest details.
- Market orders are not guaranteed to be fully filled. If market depth is insufficient or prices move rapidly, orders may be only partially filled or not filled at all.
- Under extreme market conditions, orders may trigger liquidation immediately after execution. Please manage your position size and leverage risk carefully.
Gate reserves the final right of interpretation for this product. For further assistance, please visit Gate's official support page or contact the customer service team.
Disclaimer
The content provided herein is for reference and educational purposes only and does not constitute any financial, investment, trading, or legal advice, nor does it constitute an offer or solicitation to buy or sell any digital assets. Gate makes no express or implied representations or warranties regarding the accuracy, completeness, or timeliness of the information contained herein. Product features, interfaces, rules, and fee structures may be updated or adjusted at any time. Please refer to the latest announcements and the actual information displayed on the Gate platform for the most accurate details.
Digital asset investments involve significant risk, and prices may fluctuate substantially. You may lose the entire amount of your investment. Please make decisions cautiously based on your own financial situation and risk tolerance after fully understanding the associated risks. If necessary, you are advised to consult an independent professional financial or legal advisor.
For more information about potential risks, please refer to Gate's Risk Disclosure and User Agreement.
