BBO (Best Bid Offer) orders are a powerful trading tool available across both spot and derivatives markets on the Crypto.com Exchange. Designed for traders seeking speed and precision in volatile markets, BBO helps you align your limit orders with real-time market dynamics, potentially enabling faster executions and optimal pricing. Below, we'll break down the essentials to get you started.
What is BBO?
BBO refers to the highest bid price (best offer to buy) and the lowest ask price (best offer to sell) available on the order book at any moment. On Crypto.com Exchange, BBO empowers you to place limit orders that automatically reference these top-tier prices—whether you're trading spot pairs like BTC/USD or derivatives like perpetual futures. This feature streamlines your strategy by reducing manual price hunting, all while maintaining the control of a limit order.
How Do BBO Orders Work?
A BBO order is a type of limit order that dynamically sets your execution price based on the current order book, using one of four predefined options. Once placed, it joins the order book like any limit order and executes when the market reaches your set price (or better). Here's how each variant operates:
Counterparty 1: Matches against the opposite side of the market at the absolute best price. For a buy order, it uses the lowest available ask price. For a sell order, it uses the highest available bid price.
Queue 1: Aligns with the same side of the market at the best price. For a buy order, it sets at the highest available bid price. For a sell order, it sets at the lowest available ask price.
Counterparty 5: References the fifth-best price on the opposite side for added depth. For a buy order, it's the fifth-lowest ask price. For a sell order, it's the fifth-highest bid price.
Queue 5: Uses the fifth-best price on the same side. For a buy order, it's the fifth-highest bid price. For a sell order, it's the fifth-lowest ask price.
If your order is partially filled (e.g., due to limited liquidity at that exact price), the remaining quantity stays active in the order book at the original matched price. It won't automatically chase the next price level, giving you predictable control.
How to place BBO orders on Crypto.com Exchange Website?
Log In and Navigate: Sign into your Crypto.com Exchange account via web platform. Head to the Spot Trading or Derivatives Trading page, then select your desired trading pair (e.g., BTC/USD for spot or BTCUSD-PERP for derivatives).
In the order placement panel, switch to Limit Order mode. Then click [BBO] next to the price field. By default, it will select [Queue 1].
You can choose a different BBO level by clicking the price field.
Enter the quantity of the instrument you wish to buy or sell and click [Long] or [Short] to place your BBO order.
How is BBO different from other order types?
BBO orders automatically adjust to the best-available price at the time of order placement, rather than at a specific price point that you input.
BBO orders:
Dynamic Pricing: Auto-sets limit price to a BBO reference (e.g., Counterparty 1) at placement time.
Partial Fills Hold Steady: Unfilled portions remain at the initial price, avoiding slippage.
Limit Order Foundation: Only executes at your set price or better.
Non-BBO limit orders:
Fixed Pricing: You manually input a specific price (cap for buys, floor for sells).
No Auto-Adjustment: Stays static until the market hits your target.
Market orders:
Immediate Execution: Fills instantly at the prevailing market price.
Slippage Risk: May worsen progressively in low-liquidity scenarios.
Why Choose BBO? Unique Advantages
Speed Meets Control: Enjoy market-order urgency with limit-order safeguards—perfect for high-volume spot trades or leveraged derivatives.
Market Responsiveness: Automatically taps into the order book's depth, helping you stay ahead in fast-moving crypto environments.
Versatile Across Products: Seamlessly works on spot and derivatives.