What is a Limit Post Only order?
Post only orders are limit orders that are only accepted if they do not immediately execute. That is, post only orders never take liquidity from the market.
This order type is commonly used in conjunction with Limit Orders to guarantee that you will be the maker when posting to the order book. This is generally used to help add liquidity to the exchange or ensure you will avoid paying a Taker fee.
Note: This order type can only be used with a Limit Order and selecting the “Post Only” checkbox at the bottom of the buy/sell form.
When is a Limit Post Only order typically used?
Post only orders are commonly used by market makers which are typically large trading firms with specialized trading strategies that take advantage of getting the ‘maker’ rebate instead of paying the ‘taker’ fee. Taker fees are usually paid when using regular limit orders or when taking liquidity from the market, but anyone can take advantage of using post only orders.
On Beaxy, each maker receives a rebate of 0.02% on their order instead of the taker fee which starts at 0.2% however fees can be greatly reduced by paying fees with the native BXY token and coin staking. So if you make large orders or trade in high volume, post only orders may help with cost saving especially in conjunction with BXY.