Limit Order
Beginner
A limit order is a type of order to buy or sell an asset at a specific price or better. It allows traders to execute transactions at a predetermined price or a more favorable one if available in the market. This order type offers more control over the price at which a trade is executed compared to market orders, which execute at the current market price.
How Limit Orders Work
When placing a limit order, traders specify the price at which they are willing to buy or sell an asset. If the market reaches that price, the order is triggered, and the trade is executed at the specified price or better. However, there is no guarantee that the order will be filled if the market does not reach the specified price.