Common Cancellation Reasons for Futures Orders
When trading futures on Echuca Trading, orders may be canceled or fail to execute. Below are the common cancellation reasons:
1.User Canceled Orders or Stop Order Cancellations
- Reason: An order is manually canceled
- Scenario: When a user places a limit or conditional order, but cancels it manually before the trigger price is reached. For example, User A predicts BTC will drop and places a limit buy order at $40,000. After waiting without the price reaching this level, they cancel the order to free up funds for better trading efficiency.
2.Stop Orders Cancellations Canceled During Liquidation
2.1 Stop Orders was Canceled due to Insufficient Funds
- Reason: Conditional orders will be automatically canceled when triggered if there is no enough funds under your Futures Account.
- Scenario: Conditional orders are used to create take-profit or stop-loss orders. When market price reaches the specified trigger price, the order is activated, entering the market as a limit or market order. Note: Conditional orders will be canceled if the available balance in the Futures Account is insufficient to cover the required position margin when triggered.
2.2 Stop Orders was Canceled During Liquidation
- Reason: Stop-loss and take-profit orders are automatically canceled during liquidation, as the position no longer exists
- Scenario: Once a position is liquidated, all related stop-loss and take-profit orders for the contract are canceled.
3. Preset IOC (Immediate or Cancel) Orders
- Reason: Unfilled parts of an IOC (Immediate or Cancel) order are automatically canceled
- Scenario: IOC orders are executed immediately with the available price and quantity. If only partially filled, any unfilled portion of the order is canceled. If there isn’t sufficient quantity at your chosen price when placing an order, the entire order is canceled immediately.
4. No Matching Market Orders
- Reason: No available counterparty orders on the market for the order to match with
- Scenario: When a market order is placed, and a period of extreme volatility sees no available counterparty orders, causing it to be canceled.
5. Liquidation of Position
- Reason: All orders for the current contract are canceled after liquidation
- Scenario: If the margin for a position is insufficient in meeting maintenance margin requirements, the position will be liquidated by the system. Simultaneously, all related orders, including take-profit, stop-loss, and limit orders, will be canceled.
6. Close Position Orders Without Existing Positions
- Reason: Close orders are canceled if there are no open positions
- Scenario: When a user places a close order and the position is liquidated, the close order is automatically canceled.
7. Price Protection Limits
- Reason: No counterparty orders are available within the 5% price protection range
- Scenario: Echuca Trading futures enforces a 5% price protection mechanism. Buy orders cannot exceed +5% of the mark price, and sell orders cannot drop below -5% of the mark price. Orders exceeding these limits are canceled to reduce risks to your positions in volatile markets.
8.Auto-Deleveraging (ADL)
- Reason: Orders are automatically canceled when positions are auto-deleveraged
- Scenario: During auto-deleveraging (ADL), all orders for the current position, including take-profit, stop-loss, and limit orders, are automatically canceled.
9.Position Size Mismatch
- Reason: Reduce-only orders are canceled if the executed position size is insufficient
- Scenario: When holding a position and placing a reduce-only order, any remaining unfulfilled portion of the order will be canceled if the executed size does not match the intended reduction. For example, User A holds 10 long contracts and places a reduce-only sell order for 8 contracts. If they close 5 long contracts beforehand, leaving only 5 contracts, the original reduce-only sell order for 8 contracts is canceled.
10.Stop Orders Canceled: Position Size to Zero or Reversed Position
- Reason: Orders are canceled when the position size becomes zero or reverses direction
- Scenario: If a position is fully closed, or a reduce-only order exceeds the current position size, reversing the position direction, all related take-profit, stop-loss or position-specific orders are canceled.
11.Zero-Margin Orders Exceed Position Size
- Reason: When the number of non-margin-frozen orders exceeds the current position size, the system cancels the excess orders.
- Scenario: When a user holds a position and places reverse (opposite direction) orders, the portion of those reverse orders that matches the held position size is considered non-margin-frozen.
If the user's position decreases (e.g., due to manual closing or triggered take-profit/stop-loss), and as a result, the number of non-margin-frozen reverse orders exceeds the remaining position size, the system will automatically cancel the excess or all such orders to ensure that any filled orders do not exceed the available position.
✅Examples:
User A holds a long position of 10 contracts and places a reverse order to sell 15 contracts. This means 10 contracts are zero-margin orders. If the reverse order is triggered, and User A has already closed 5 of their long contracts through other trades, the system will cancel the remaining 10 zero-margin contracts.
User B holds a long position of 10 contracts and places a reverse order to sell 8 contracts. If the reverse order is triggered and User B has already closed their entire position (leaving 0 contracts), the 8 reverse order contracts will be entirely canceled as they cannot be executed.
Echuca Trading Futures Trading Guide: