> For the complete documentation index, see [llms.txt](https://docs.txflow.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.txflow.com/perp/trading-rules/position-and-order-limits.md).

# Position and Order Limits

### Position Limit

The **Position Limit** is the maximum position size you can hold in a given market (in base asset units, e.g., BTC or ETH).

When you submit an order, TxFlow checks:

```
|Resulting Position Size| ≤ Position Limit
```

Where: `Resulting Position Size = Current Position ± Order Size` (depending on direction)

<table><thead><tr><th width="389.9921875">Scenario</th><th width="421.25390625">Checks</th></tr></thead><tbody><tr><td>Adding to existing position (same direction)</td><td>|Resulting Position Size| ≤ Position Limit</td></tr><tr><td>Reducing or closing a position (opposite direction)</td><td>Always allowed — reduces exposure</td></tr><tr><td>Reversing a position (flipping long ↔ short)</td><td>|Resulting Position Size| ≤ Position Limit</td></tr></tbody></table>

### Order size limits

<table><thead><tr><th width="241.7734375">Parameter</th><th width="275.98046875">Description</th><th width="147.5">Example Value</th></tr></thead><tbody><tr><td>Minimum order size</td><td>Smallest quantity allowed</td><td>0.001 BTC</td></tr><tr><td>Maximum market order size</td><td>Largest single market order</td><td>50 BTC</td></tr><tr><td>Maximum limit order size</td><td>Largest single limit order</td><td>100 BTC</td></tr></tbody></table>

{% hint style="info" %}
Orders below minimum size will be rejected immediately.
{% endhint %}

### Price limits for limit orders

To prevent erroneous or manipulative orders, limit order prices are bounded relative to the Oracle Price.

### Buy (long) limit orders

<table><thead><tr><th width="117.68359375">Limit</th><th width="338.125">Formula</th><th width="306.5859375">Purpose</th></tr></thead><tbody><tr><td>Price Cap</td><td>Oracle Price × (1 + Max Deviation %)</td><td>Prevent buying far above fair value</td></tr><tr><td>Price Floor</td><td>Oracle Price × 0.2</td><td>Prevent unrealistic lowball bids</td></tr></tbody></table>

### Sell (short) limit orders

<table><thead><tr><th width="112.87890625">Limit</th><th width="333.37890625">Formula</th><th width="353.02734375">Purpose</th></tr></thead><tbody><tr><td>Price Cap</td><td>Oracle Price × 5</td><td>Prevent unrealistic high asks</td></tr><tr><td>Price Floor</td><td>Oracle Price × (1 - Max Deviation %)</td><td>Prevent selling far below fair value</td></tr></tbody></table>

### Dynamic Price Bands (Advanced)

For actively traded markets, TxFlow calculates tighter price bands based on recent premium:

```
Price Cap (Buy) = Min[Max(Oracle Price, Oracle Price * (1 + Y) + Average premium), Oracle Price * (1 + Z)]
Price Floor (Sell) = Min[Max(Oracle Price, Oracle Price * (1 - Y) + Average premium), Oracle Price * (1 + Z)]
```

Where:

* `Y` = Short-term deviation allowance (e.g., 2%)
* `Z` = Maximum deviation cap (e.g., 5%)
* `Average premium` = 2-minute moving average of `(Mid Price - Oracle Price)`

### Slippage protection for market orders

Market orders are protected by a fixed **5% slippage tolerance** (not user-configurable).

<table><thead><tr><th width="119.60546875">Order type</th><th width="321.94921875">Acceptance Condition</th><th width="271.28515625">if exceeded</th></tr></thead><tbody><tr><td>Market buy</td><td>Execution Price ≤ Oracle Price × 1.05</td><td>Partially fill valid portion; cancel the rest</td></tr><tr><td>Market sell</td><td>Execution Price ≥ Oracle Price × 0.95</td><td>Partially fill valid portion; cancel the rest</td></tr></tbody></table>

### Related Pages

<table><thead><tr><th width="233.87109375">Pages</th><th>Description</th></tr></thead><tbody><tr><td><a href="/pages/RsrFttIKuKlVFyVqd25z">Margin Tiers</a></td><td>Maximum leverage by asset and position size</td></tr><tr><td><a href="/pages/ULmoXhthX9AEP6aH6ZSe">Order Types and Matching</a></td><td>Market, Limit, and advanced orders and matching mechanics</td></tr><tr><td><a href="/pages/z986rTaJ8Z98daTE3x0N">Liquidation</a></td><td>Detailed liquidation mechanics</td></tr><tr><td><a href="/pages/qHStLNd4Ek6xhOePLqG1">Trading Fees</a></td><td>Trading and funding fees</td></tr></tbody></table>


---

# Agent Instructions
This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com.

## Querying This Documentation
If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter:

```
GET https://docs.txflow.com/perp/trading-rules/position-and-order-limits.md?ask=<question>&goal=<endgoal>
```

`ask` is the immediate question: it should be specific, self-contained, and written in natural language.
`goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal.

The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.