An algorithmic order is a method of smart execution of large trades in a scalable mode.

A scaled order is a specialized tool that allows traders to break large orders into several smaller subordinate trades. This approach minimizes impact on the market price, reduces slippage, and helps achieve a better average execution price. Unlike a one-time order, which can provoke sharp fluctuations in quotes, a scaled order is the most effective alternative for closing positions and choosing the optimal entry point.

How a scaled order works in practice

The main principle is to sequentially place limit orders within a selected price range. When you place a scaled order, the system automatically distributes your total amount into parts and sends them as separate orders at different price levels.

For example: if you want to sell 1000 ETH within the range of 1600 to 1780 USDT in ten separate orders, the system will place the first order at 1600 USDT, the second at 1620 USDT, the third at 1640 USDT, and so on. Each order will execute 100 ETH. The average execution price with this distribution will be approximately 1690 USDT.

This process runs automatically, allowing you to focus on your strategy rather than manually managing dozens of orders.

Four distribution options: from uniform to customizable

The Bybit platform offers four main methods for distributing orders and prices for a scaled order:

Uniform distribution — the simplest option. All subordinate orders have the same size, and the price intervals between them remain equal. This method is ideal when you expect fluctuations within a certain range but have no bias regarding the market direction.

Distribution by increasing allows geometrically increasing the size of orders or entry prices. Each subsequent order will be larger than the previous by a set progression. This tactic is useful if you anticipate a trend reversal and are ready to increase your position during strong market moves.

Distribution by decreasing works the opposite: each next order is smaller than the previous one. This allows you to keep more capital in reserve for unexpected fluctuations or controlled profit-taking.

Custom distribution provides maximum flexibility. You set the number of orders, prices, and sizes of each according to your own investment strategy.

Practical recommendations for use

Regardless of the chosen distribution method, there are important limitations:

• One order can be split into 2–50 subordinate orders
• The price of each subordinate order must be within the set range
• The minimum share of a single order should not be less than 0.01%
• The total share of all orders must equal 100%
• The size of each subordinate order cannot exceed the maximum allowed size on the platform

For example, if the minimum and maximum amounts for BTCUSDT are 0.001 BTC and 100 BTC, then for a scaled order, the minimum will be 0.01 BTC, and the maximum — 1000 BTC.

Three main advantages of scaled orders

Minimized slippage. Breaking a large order into smaller parts eliminates sudden price movements and protects you from unexpected losses during execution.

Precise control over execution. You can adjust the size and timing of each part according to current market conditions, adapting to short-term fluctuations without losing your strategy.

Multiple entry and exit points. Instead of a fixed price, you get a series of entry levels, allowing better capital placement and faster adaptation to trend changes.

Step-by-step: how to place a scaled order

On PC:

1. Log in to Bybit and go to the derivatives trading page
2. Select the desired contract
3. Click the “Tools” tab and choose “Scaled Order”
4. Set the price range (upper and lower bounds) and total quantity
5. Select the number of individual orders from the dropdown menu
6. Choose the distribution type: uniform, increasing, decreasing, or customizable
7. If needed, manually adjust the prices and percentages of each order
8. Review, confirm, and submit the order

On the mobile app:

1. Go to the “Trade” tab
2. Expand the order type menu and select “Scaled Orders”
3. Set the price range and total quantity
4. Choose the number of orders and distribution type
5. Submit the order

After submission, some limit orders may execute immediately if the current market price is already above or below the set levels. In such cases, the platform will ask for your confirmation for immediate execution.

Open orders will appear in the “Open Orders” section, where you can monitor their status and make adjustments if needed.

A scaled order is a powerful tool for professional and experienced traders, enabling maximum execution efficiency, cost control, and adaptation to changing market conditions.