---
id: education_item.orders-and-trade-execution
page_type: education_article
title: "Orders and Trade Execution"
description: "Limit and market orders, maker and taker, fees, partial fills and slippage in trading: why a limit order doesn't get filled and how to control it."
section: education
category: "Key Terms and Concepts"
url: https://moonbot.eu/en/education/key-terms-and-concepts/orders-and-trade-execution?format=md
locale: en
alternate_ru: https://moonbot.eu/education/key-terms-and-concepts/orders-and-trade-execution?format=md
parent: https://moonbot.eu/en/education/key-terms-and-concepts?format=md
previous: https://moonbot.eu/en/education/key-terms-and-concepts/price-and-market-mechanics?format=md
next: https://moonbot.eu/en/education/key-terms-and-concepts/types-of-trading-and-positions?format=md
status: published
updated_at: 2026-10-19T04:25:04+03:00
---

# Orders and Trade Execution

- **Order**\
  a trader’s request to buy or sell an asset on the exchange under specified conditions. The entry price, execution speed and the final return on the trade depend directly on the type of order selected.
- **Limit order**\
  an order to buy or sell an asset at a specified price or better. Such an order is executed only when the market reaches the specified price level. How to place a limit order: in the trading terminal, you specify the desired asset, volume and limit price (for example, "buy BTC at 64,500 USDT). The order is placed in the order book and awaits a matching offer. If the market does not reach the specified price, the order will not be executed - this answers the question "why a limit order is not executed": either the price has not been reached, or there is insufficient counter-liquidity at the required level to cover the full volume. To minimise slippage, experienced traders often use limit orders instead of market orders, or combine approaches: for example, they take part of the volume via a market order for a quick entry, and fill the remainder with limit orders at more favourable prices.
- **Market order**\
  an order to buy or sell an asset at the best available market price at the current moment. It is executed immediately, but there is no guarantee of the exact price. This type of order is chosen when speed is the priority: for example, when urgently closing a losing position or entering a strong trend. However, it is market orders that most often encounter slippage in trading - a situation where the actual execution price differs from the expected price.
- **Order execution**\
  the process by which a trader’s order to buy or sell an asset is actually executed in the market by matching it with opposing orders in the order book. It is not uncommon for an order to be executed not in full, but in parts – this is known as a partial execution. This occurs when there are insufficient matching orders at a single price in the order book, and the exchange executes the order sequentially at the next available price levels.

  Partial order execution is particularly noticeable:\
  • on illiquid assets (few orders in the order book);\
  • when volumes are large relative to the depth of the order book;\
  • during periods of sharp market movements, when the price changes faster than the order can be executed.

**Maker and taker: what’s the difference?**

The role of an order in the order book determines whether you are providing liquidity or taking it away — and has a direct impact on the size of the fees.

- **Maker**\
  the role of an order that adds liquidity to the order book by waiting to be filled at a specified price. Limit orders tend to fall into the category of maker orders (unless they are executed instantly).
- **Taker**\
  the role of an order that immediately fills using existing orders in the order book, removing liquidity from the market. Market orders are almost always treated as taker orders.

The difference between them is important not only for understanding market mechanics, but also for calculating costs: exchanges usually offer reduced fees for makers and standard (or higher) fees for takers.

**Maker and taker fees: how they affect the outcome**

- **Maker fee**\
  a commission charged by the exchange for orders that add liquidity to the order book. It is often lower, or even zero, under a liquidity incentive scheme.
- **Taker fee**\
  a commission charged on orders that remove liquidity from the order book (primarily market orders). It is usually higher than the maker commission.
- **Exchange fee**\
  a fee charged by the exchange for opening and closing trading positions. The commission is charged each time an order is executed and reduces the actual financial outcome of the trade, regardless of whether it is profitable or not.

Typically:

- A fee is charged both when entering and exiting a position
- The fee amount depends on the order type (market or limit) and the exchange's fee schedule
- Even a losing trade will reduce your deposit further due to the commission.

- **Slippage**\
  a situation where an order is executed at a price different from the expected one. This occurs due to how exchanges operate: when you place a market order to buy or sell, it is filled using the **limit orders available in the order book from other traders**. If your order volume exceeds the available volume at the best price level, the system will continue executing the order at the next less favorable price levels.

**Example**: You want to buy 10 BTC at the current market price of 65,000 USDT. The order book only has 3 BTC available at that level. Your market order will be executed as follows:

- 3 BTC at 65,000 USDT (best price)
- 4 BTC at 65,050 USDT (next level)
- 3 BTC at 65,100 USDT (higher level).

As a result, the average purchase price will be around 65,070 USDT instead of the expected 65,000 USDT. This 70 USDT difference per bitcoin is the **slippage**.

Slippage is especially noticeable on low-liquidity assets (few orders in the order book) or during rapid market movements when the price changes faster than your order can be filled. To minimize slippage, experienced traders use limit orders instead of market orders or break large trades into smaller ones.

**Practical considerations and common mistakes**

- Why is a limit order not executed? Most often, the reason is that the price has not reached the specified level or there was no matching volume at that level. An order may also be cancelled by the system due to expiry (if a GTC or IOC order type is set) or due to insufficient funds in the account at the time a matching order appears.
- Partial execution is not always a bad thing: it reflects the actual liquidity structure. However, if you were counting on a specific average price and partial execution has resulted in significant slippage, it is worth reviewing the order size or your entry strategy.
- Slippage can be partially controlled by analysing the order book before placing a market order, using limit orders and splitting large volumes.
- The spread and commissions must be taken into account when calculating the break-even point: even a small difference in costs can significantly affect returns over the long term.

Understanding the difference between a market order and a limit order, as well as knowing how makers and takers work, what spreads can be like and what slippage is, enables a trader to make informed choices about the type of order to use, forecast potential costs and avoid common mistakes when executing trades.

We recommend that you read the supplementary material entitled ["Editing an Order" >>>](https://moonbot.eu/en/documentation/orders-window-overview/editing-an-order?format=md)

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Parent section: [Key Terms and Concepts](https://moonbot.eu/en/education/key-terms-and-concepts?format=md)

Previous: [Order Book, Price and Market Mechanics](https://moonbot.eu/en/education/key-terms-and-concepts/price-and-market-mechanics?format=md)

Next: [Types of Trading and Positions](https://moonbot.eu/en/education/key-terms-and-concepts/types-of-trading-and-positions?format=md)

## Related

- [Types of Trading and Positions](https://moonbot.eu/en/education/key-terms-and-concepts/types-of-trading-and-positions?format=md)
- [Derivatives and Borrowed Funds](https://moonbot.eu/en/education/key-terms-and-concepts/derivatives-and-borrowed-funds?format=md)
- [Position and Risk Management](https://moonbot.eu/en/education/key-terms-and-concepts/position-and-risk-management?format=md)
- [Trading Strategies and Styles](https://moonbot.eu/en/education/key-terms-and-concepts/trading-strategies-and-styles?format=md)