Limit Order/Limit Buy/Limit Sell

A limit order is an instruction to buy or sell a cryptocurrency at a specified price or better. A limit buy order specifies the maximum price the buyer is willing to pay, while a limit sell order specifies the minimum price the seller is willing to accept. These orders are executed only if the market price reaches the specified limit price or better.

Example of Limit Buy:

- If the current market price of Bitcoin is $50,000, and you want to buy it but only if the price drops to $45,000 or lower, you can place a limit buy order at $45,000. If the price drops to $45,000 or below, your order will be executed.

Example of Limit Sell:

- If you own Bitcoin and want to sell it but only if the price rises to $55,000 or higher, you can place a limit sell order at $55,000. If the price reaches $55,000 or above, your order will be executed.

Limit orders provide control over the price at which a trade is executed, but there is a risk that the order may not be filled if the market does not reach the specified price.