Definition
A limit order is an instruction to buy or sell a cryptocurrency at a specific price or better. Unlike a market order, a limit order gives traders greater control over the execution price. A buy limit order executes only when the market reaches the specified price or lower, while a sell limit order executes only at the specified price or higher. Limit orders may not execute immediately if the market does not reach the desired level.
Simple Explanation
A limit order allows you to choose the price at which you want to buy or sell cryptocurrency.
Example
A trader places a buy limit order for Bitcoin at ₹80,00,000 and waits for the market to reach that price.
Why It Matters
Limit orders help traders manage risk and improve price control.
Frequently Asked Questions
What is a limit order?
It is an order to buy or sell at a specified price or better.
Will a limit order always execute?
No, it only executes if the market reaches the chosen price.
Why use a limit order?
To gain more control over trade pricing.