Limit Order

A limit order is an instruction placed on a crypto exchange to buy or sell an asset at a chosen price or better. For a buy limit order, the trade will execute only at the limit price or lower. For a sell limit order, it will execute only at the limit price or higher. Unlike a market order, which tries to fill immediately at the best available price, a limit order gives you more control over the price but does not guarantee the trade will happen.

Limit orders matter because crypto prices can move quickly, and the best available price may change between the time you click and the time an order fills. Traders use limit orders to plan entries and exits, avoid paying more than intended, or place offers into an order book. For example, if Bitcoin is trading at $65,000 and you want to buy only if it falls to $63,000, you could place a buy limit order at $63,000. It will fill only if sellers are willing to trade at that price or below, and it may fill partially or not at all.