How to Use Scaled Orders to Trade Derivatives on Bybit

In trading, derivatives are financial instruments that derive their value from underlying assets, such as cryptocurrencies, allowing traders to profit from price movements without direct ownership. Scaled orders, a popular tool among derivatives traders, break large trades into smaller orders across a price range, providing enhanced execution control and reduced market impact. This article explores how Bybit scaled orders work, their strategic advantages and how to use them effectively.

Key Takeaways:

• Scaled orders enhance trade execution, enabling precise management of trades.

• They also minimize market impact, which is ideal for large trades.

•  With a scaled order, you can place a trade across different price levels for consistent entry/exit execution.

What Are Scaled Orders?