How a scale order works
You set the total size, a price range, and the number of orders. The terminal places that many limit orders across the range. With no skew the prices are evenly spaced and every order is the same size. Price skew bunches the orders towards one end of the range; size skew puts more size on the orders further from the current price, so the average entry moves faster in your favour as the market reaches deeper levels.
The orders rest as ordinary limit orders and fill independently. If price only reaches the first three rungs you hold a smaller position at a worse average than planned, and the remaining rungs stay open until you cancel them or price comes back.
When to use one
Scale orders fit a view about a zone rather than a level: buying a pullback into a support band, selling into a resistance band, or adding to a funding trade as the spread widens. They replace the habit of placing one limit order, watching price miss it by a few dollars, and chasing.
They also pair naturally with the liquidation map. Long liquidation clusters below the price mark where forced sellers will appear; a ladder spread across that band is positioned to buy from them. The main risk is a fill on the whole ladder followed by more downside. Size the total for the case where every rung fills, and use reduce-only ladders to exit a position in stages.
Example: buying a BTC pullback across $75,000 to $73,000
WORKED EXAMPLEBTC trades at $77,300. The liquidation map shows $1.1B of long liquidations between $75,000 and $73,000, so a trader wants to be a buyer through that band.
- Total size
- 2 BTC
- Range
- $75,000 to $73,000
- Orders
- 5, every $500
- Size skew
- Heavier at the bottom: 0.2, 0.3, 0.4, 0.5, 0.6 BTC
- If price reaches $74,000
- 0.9 BTC filled, average $74,389
- If the whole ladder fills
- 2 BTC, average $73,750
A single 2 BTC bid at $74,000 would have filled entirely or not at all. The ladder builds the position at a pace set by the market and improves the average on every additional rung.