To prevent malicious market price manipulation and reduce the risk of extreme volatility, Gate has established corresponding restriction mechanisms for both limit and market orders in futures trading. These measures are designed to protect investors’ interests and maintain a healthy, stable market.
Limit Order Order Price Restrictions
For limit orders, Gate applies order price restriction ratios. These restrictions apply only to taker orders; maker orders are not subject to these restrictions. The specific rules are as follows:
Long (buy) orders: Only the maximum order price is restricted.
Maximum order price = Mark Price × (1 + X%);
Short (sell) orders: Only the minimum order price is restricted.
Minimum order price = Mark Price × (1 - X%).
Order price restriction ratios vary by futures market. Please refer to the Futures Information page.
Example
Using the BTCUSDT futures contract as an example, assume the current Mark Price is 50,000 USDT and the maximum permitted deviation for this market is 10%.
Maximum order price for long positions: 50,000 × (1 + 10%) = 55,000 USDT. In other words, the order price cannot exceed 55,000 USDT;
Minimum order price for short positions: 50,000 × (1 - 10%) = 45,000 USDT. In other words, the order price cannot be lower than 45,000 USDT.
Notes
• Position-reducing orders: The order price cannot exceed the bankruptcy price of the position.
• Position-increasing orders: The order price cannot exceed the estimated liquidation price of the position.
• Under extreme market conditions, an order may still be liquidated immediately after execution. To reduce risk, we recommend appropriately lowering leverage before trading.
• Order price restriction ratios are dynamically adjusted based on market volatility. Please stay up to date with changes to the futures information.
Market Order Trading Restrictions
Gate applies the following restrictions to market orders:
- Maximum market order slippage;
- Deviation protection relative to the Mark Price;
- Maximum order quantity per market order.
The system calculates the allowable execution price range for market orders based on order book prices, the Mark Price, and the relevant market parameters. Market orders can only be executed within this price range and up to the maximum quantity per order.
The deviation protection ratio currently used for market orders is the same as the limit order price restriction ratio for the relevant market. It may be adjusted in the future based on market conditions.
Market order price protection rules apply to both order validation before an order enters the matching engine and the matching process after it enters the matching engine.
Before an order enters the matching engine, the system validates its price based on order book prices, the Mark Price, and the relevant market parameters, following the same logic described below for market buy and market sell orders. If the current best opposing quote is already outside the allowable execution price range, the system will reject the entire order directly. The order will not enter the matching engine, and the user will receive an order rejection notification on the order placement page.
Therefore, under extreme market conditions or similar circumstances, a market order may be rejected before entering the matching engine. Passing the pre-matching validation does not guarantee that an order will be executed or fully executed. After entering the matching engine, the order remains subject to price protection and the maximum quantity per order.
Market Buy Orders
The system separately calculates the slippage cutoff price and Mark Price upper limit for market buy orders:
Slippage cutoff price = Best Ask Price × (1 + Maximum Market Order Slippage)
Mark Price upper limit = Mark Price × (1 + Deviation Protection Ratio)
The maximum price at which a market buy order may ultimately be executed is:
Buy Order Matching Cutoff Price = min (Slippage Cutoff Price, Mark Price Upper Limit)
The decision 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 cannot exceed the buy order matching cutoff price;
- If the buy order matching cutoff price is lower than the best ask price, no executable sell orders within the permitted price range are available in the current order book. The system will directly reject the market buy order.
Market Sell Orders
The system separately calculates the slippage cutoff price and Mark Price lower limit for market sell orders:
Slippage cutoff price = Best Bid Price × (1 - Maximum Market Order Slippage)
Mark Price lower limit = Mark Price × (1 - Deviation Protection Ratio)
The minimum price at which a market sell order may ultimately be executed is:
Sell Order Matching Cutoff Price = max (Slippage Cutoff Price, Mark Price Lower Limit)
The decision 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 cannot be lower than the sell order matching cutoff price;
- If the sell order matching cutoff price is higher than the best bid price, no executable buy orders within the permitted price range are available in the current order book. The system will directly reject the market sell order.
Maximum Quantity per Market Order
In addition to price restrictions, different futures markets also impose a maximum order quantity per 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 quantity per market order is reached.
The executed portion remains valid, while any unfilled remainder will be canceled.
For the maximum market order slippage, deviation protection ratio, and maximum order quantity per futures market, please refer to the information displayed on the Futures Information page.
Scenario Examples
Scenario 1: Ask Prices Are 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% |
Calculation results:
Slippage cutoff price = 100 × (1 + 5%) = 105
Mark Price upper limit = 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 in the current order book priced at or below 90.9. Therefore, this market buy order will be directly rejected.
Here, 90.9 is not the price of a sell order in the order book, but rather the highest price at which this market buy order is allowed to execute.
Scenario 2: Ask Prices Are 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% |
Calculation results:
Slippage cutoff price = 100.5 × (1 + 5%) = 105.525
Mark Price upper limit = 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, this market buy order can enter matching, but it can only be executed at prices up to 102. If the order is not fully executed, any remaining portion beyond the price range of 102 will be canceled.
Scenario 3: Bid Prices Are 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% |
Calculation results:
Slippage cutoff price = 100 × (1 - 5%) = 95
Mark Price lower limit = 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 in the current order book priced at or above 108.9. Therefore, this market sell order will be directly rejected.
Here, 108.9 is not the price of a buy order in the order book, but rather the lowest price at which this market sell order is allowed to execute.
Scenario 4: A Market Order Reaches the Maximum Quantity per Order
Using the BTCUSDT futures contract as an example, assume the current order book is as follows. The maximum market order slippage for this market is 2%, and the maximum quantity per market order is 120 contracts:
| 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 |
Assume the price upper limit calculated based on Mark Price deviation protection is no lower than 51,000 USDT. Then:
Slippage cutoff price = 50,000 × (1 + 2%) = 51,000 USDT
If a user submits a market buy order for 200 contracts, the order can be executed at prices up to 51,000 USDT and for a maximum of 120 contracts.
The order will be matched sequentially with sell orders at the 50,000, 50,500, 50,800, and 51,000 price levels. Once the cumulative executed quantity reaches 120 contracts, the system stops further matching, and the remaining 80 contracts are automatically canceled.
Notes
- Pre-matching validation and the matching process use the same market order price protection logic. If pre-matching validation fails, the system will directly reject the entire order. The order will not enter the matching engine, and an order rejection notification will appear on the order placement page.
- After an order enters the matching engine, if no executable counter-orders exist within the price protection range, the system will reject the market order. If the order has been partially executed when it reaches the matching cutoff price or the maximum quantity per order, the executed portion remains valid and the unfilled remainder will be canceled.
- Maximum market order slippage, the deviation protection ratio, and the maximum quantity per order may be dynamically adjusted based on market conditions. Please refer to the information displayed on the Futures Information page.
- Market orders are not guaranteed to be fully executed. If market depth is insufficient or prices fluctuate rapidly, an order may be only partially executed or may not be executed at all.
- Under extreme market conditions, an order may still trigger liquidation immediately after execution. Please carefully manage your position and leverage risk.
Gate reserves the final right of interpretation for this product. For further assistance, please visit Gate’s official support page or contact the customer support 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.
