In crypto trading, a Limit Order is an order that lets a trader buy or sell a cryptocurrency at a specific price or better.
When a limit order is placed, a trader has to wait for the asset he’s buying or selling to reach a certain price.
Limit orders guarantee you the price you’ve set, but using this type of order doesn’t guarantee your order will be filled immediately.
Unlike market orders, limit orders are not instantaneous orders.
Limit orders will go to the order book and look at the limit orders already placed.
The order book will fill the order once the last price reaches the limit price or better.
You can also set an expiration date on the limit order that cancels it automatically if it doesn’t get filled.
Limit orders also have the potential to be partially filled.