A limit order is an order to buy or sell a set amount of cryptocurrency or tokens at a specific or better price.
- A buy limit order can only be executed at the limit price or lower
- A sell limit order can only be executed at the limit price or higher.
There is no guarantee that a limit order will be filled.
A limit order can only be filled if the cryptocurrency/token's market price reaches the specified limit price while the order is open.
Limit orders help to ensure that traders do not pay more than a pre-determined price that they are comfortable with for an amount of cryptocurrency/tokens.