🔍 Introduction: What Is a Post-Only Order?
A Post-Only order is a type of limit order that ensures you are a maker (adding liquidity to the order book) rather than a taker (removing liquidity). If your order would be immediately filled — meaning it would act as a taker — it is canceled instead of being executed.
Post-Only orders are designed for traders who want to guarantee they pay maker fees, which are lower than taker fees. By using Post-Only orders, you can save a significant amount on trading costs, especially if you trade frequently.
Post-Only orders do not guarantee execution. If the market price is already at or beyond your limit price, the order will be canceled. This means you may miss opportunities if the market moves quickly.
⚙️ How a Post-Only Order Works
When you place a Post-Only order, the exchange checks whether your order would be filled immediately at the current market price. If it would be, the order is rejected and canceled. If it would sit in the order book (adding liquidity), it is accepted and remains active until filled or canceled.
Example: The current price of BTC is $60,000. You place:
- Buy Post-Only order: Limit price $59,500. This order sits in the order book because it's below the current price. It is accepted and you pay maker fees when it fills.
- Buy Post-Only order: Limit price $60,100. This order would be filled immediately (since there are sellers at $60,100). It is canceled because it would act as a taker order.
By using Post-Only, you are guaranteeing that you never pay taker fees on that order.
Post-Only orders are especially useful for traders who use limit orders regularly and want to ensure they are always adding liquidity and paying lower fees.
⚖️ Post-Only vs. Regular Limit Order
Understanding the difference between a Post-Only order and a regular limit order is essential:
| Feature | Post-Only Order | Regular Limit Order |
|---|---|---|
| Execution | Only if it adds liquidity (not immediately filled) | Executes when limit price is reached (may be immediate) |
| Fee Type | Maker fee (guaranteed) | Maker or taker (depending on fill) |
| Guaranteed Fill | No (canceled if immediate) | No (may not fill) |
| Best For | Saving on fees | General limit order use |
Use Post-Only orders if you are not in a hurry and want to guarantee lower fees. Use regular limit orders if you are willing to accept taker fees for faster execution.
✅ When to Use a Post-Only Order
Post-Only orders are ideal in the following scenarios:
Use Post-Only to guarantee you pay maker fees, which can be 25–50% lower than taker fees.
Post-Only orders ensure you add liquidity to the order book, helping the market function efficiently.
If you are not in a hurry to enter or exit a position, Post-Only lets you wait for your price while saving on fees.
Frequent traders can save significant amounts by using Post-Only orders to avoid taker fees.
Many exchanges allow you to set Post-Only as the default order type for all your limit orders. Check your exchange's settings.
⚠️ Risks of Using Post-Only Orders
While Post-Only orders are useful, they come with some risks:
- Order Cancellation: Your order will be canceled if it would be immediately filled, meaning you may miss an opportunity if the market moves quickly.
- No Fill Guarantee: Like all limit orders, Post-Only orders are not guaranteed to fill. The market may never reach your price.
- Faster Market Conditions: In fast-moving markets, many of your orders may be canceled, leading to frustration and missed opportunities.
- Not Suitable for Urgent Trades: If you need to enter or exit a position quickly, a Post-Only order is not the right choice.
You place a Post-Only buy order at $59,500. The price drops to $59,400 and then rebounds to $60,000. Your order would have been canceled because it was immediately fillable at $59,400, and you miss the opportunity.
📝 How to Set Up a Post-Only Order
Follow these steps to place a Post-Only order on most exchanges:
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1
Choose your trading pair
Select the asset you want to trade (e.g., BTC/USDT).
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2
Select "Limit" order type
In the order entry panel, choose "Limit" as the order type.
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3
Enable "Post-Only" option
Look for a checkbox or toggle labeled "Post-Only" or "Maker Only" and enable it.
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4
Set your limit price
Enter the price at which you want to buy or sell.
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5
Enter the amount
Specify the quantity you want to trade.
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6
Review and place the order
Double-check your price and amount, then click "Buy" or "Sell" to place the Post-Only order.
Some exchanges allow you to set Post-Only as the default for all your limit orders in the settings. This ensures you never accidentally pay taker fees.
💰 Post-Only Orders and Maker Fees
Post-Only orders guarantee that you pay maker fees, which are significantly lower than taker fees. Here's a comparison of typical maker fees on major exchanges:
- Binance: 0.10% (0.075% with BNB)
- OKX: 0.08% (0.072% with OKB)
- Bybit: 0.10%
- KuCoin: 0.10% (0.08% with KCS)
- Coinbase: 0.40% (higher than most)
By using Post-Only orders, you can save a significant amount on fees over time. For active traders, this can amount to hundreds or thousands of dollars per year.
For frequent traders, using Post-Only orders can reduce trading costs by 25–50% compared to using market orders.
📋 Post-Only Order Variations
Some exchanges offer variations of the Post-Only order:
A Post-Only order that remains active until filled or manually canceled (Good-Till-Canceled).
A Post-Only order that expires at the end of the trading day if not filled.
A stop-limit order that is also Post-Only, ensuring the limit part adds liquidity.
An OCO order where the limit orders are Post-Only, ensuring maker fees on both sides.
If you are using OCO or stop-limit orders, enable Post-Only on the limit components to ensure you pay maker fees.
⚠️ Common Mistakes with Post-Only Orders
- Using Post-Only for urgent trades: If you need immediate execution, a Post-Only order will likely be canceled, causing you to miss the opportunity.
- Not understanding the cancellation behavior: Some traders are surprised when their orders are canceled because they would be immediately filled.
- Setting unrealistic prices: If your limit price is too far from the market, your order may never fill, and you may miss the trade.
- Forgetting to enable Post-Only: Some traders intend to use Post-Only but forget to enable it, accidentally paying taker fees.
- Using Post-Only in highly volatile markets: During high volatility, many Post-Only orders are canceled, reducing their effectiveness.
If you are using Post-Only and find that many of your orders are being canceled, consider using regular limit orders or adjusting your limit price.
✅ Best Practices for Post-Only Orders
- Use Post-Only for non-urgent trades: If you can wait for your price, Post-Only is an excellent way to save on fees.
- Set realistic limit prices: Place your orders at levels where they are likely to fill within a reasonable timeframe.
- Combine with other strategies: Use Post-Only with dollar-cost averaging (DCA) or swing trading strategies.
- Monitor canceled orders: If your Post-Only orders are frequently canceled, consider adjusting your limit price or using a different order type.
- Check exchange settings: Some exchanges allow you to set Post-Only as the default order type.
Post-Only orders are powerful tools for saving on trading fees. Use them wisely, and always consider the trade-off between fee savings and execution certainty.