Introducing Scaled Orders on Synthetix Perps

Scaled orders automatically generate a series of limit orders

Instead of placing one large limit order at one level, a scaled order automatically generates multiple smaller limit orders distributed across a price range you define. Typically, traders use scaled orders to "ladder in" to long positions during a decline in price and "ladder out" while taking profits during an increase in price.

Here's how scaled orders work and how to use them.

What is a Scaled Order?

A scaled order automatically generates multiple limit orders within a specified price range.

It splits one large order amount into several smaller suborders and distributes them across that price range, instead of committing all of your order size to a single price point.

The result is a series of orders that scale into or out of a position gradually, helping traders capture a better average price while reducing the impact any single execution has on the order book.

When to Use a Scaled Order

Scaled orders are most useful when you want to:

• Average your entry or exit price across a range, rather than committing at a single price point.
• Ladder into a position during uncertain market conditions, or ladder out when taking profits.
• Reduce the impact of short-term volatility and slippage on your average fill.
• Avoid revealing your total order volume to the market, which can influence other participants and move price against you.

Scaled orders are well-suited to both longer-term accumulation strategies and shorter-term trading in volatile markets.

Distribution Types

Scaled orders on Synthetix support three quantity distribution types, which control how your total size is allocated across the price range.

Equal (Flat): Each suborder receives the same size. The amount is distributed uniformly across every price point in the range. Equal is the most straightforward option and works well when you expect price to move within the range but have no specific bias toward it trending higher or lower.

Increasing: Suborder size grows as price moves in a specific direction. The suborder at the highest price carries the largest quantity, meaning more of the asset is traded at higher prices. Increasing is commonly used to distribute sell orders and lift the average selling price.

Decreasing: Suborder size shrinks as price rises. The suborder at the highest price carries the smallest quantity, meaning more of the asset is traded at lower prices. Decreasing is commonly used to distribute buy orders and lower the average buy price.

Note: Traders can also choose to edit the intervals of price distribution in the 'Price Distribution' subsection of the scaled orders panel. This will place suborders at larger or smaller price intervals. This can be used synchronously with order distribution types to customize scaled orders even further.

How to Place a Scaled Order

To place a scaled order on Synthetix Perps:

1. Open the Synthetix trading interface
2. Select the advanced order dropdown. You may see an order type such as "Stop Market" currently selected. Simply click on the currently selected advanced order to choose a new advanced order type.
3. Choose "Scaled"
4. Set your parameters:
   • Lower and upper price range
   • Total size
   • Total number of orders
   • Quantity distribution (Equal [Flat], Increasing, or Decreasing)
   • Price distribution (Equal [Flat], Increasing, or Decreasing)
5. Choose buy or sell, preview the suborders generated from your inputs, and submit. Your suborders will be placed across the price range as individual limit orders.

Key Points

A few things to keep in mind when using scaled orders:

• Execution depends on market movements. Some or all suborders may remain unfilled if price does not reach the specified levels.
• A tighter price range keeps your fills closer to the current market, while a wider range gives the market more room to move and helps smooth your average fill across short-term volatility.
• Choosing a higher order count breaks your size into smaller, more granular suborders across the range.
• Equal (Flat), Increasing, and Decreasing each shape your average fill differently. Pick the distribution that matches your bias for how price will move through the range.

Try Scaled Orders now

Scaled orders are now live on Synthetix Perps.

Start trading now:https://exchange.synthetix.io/
If you need assistance, visit:https://docs.synthetix.io/

You can also click the chat icon in the bottom-right corner of the docs site to speak directly with the Synthetix team.

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