What is Limit Order

A limit order is an instruction to buy or sell an asset at a specific price or better.

• Buy Limit Order: You set the maximum price you are willing to pay. The order will only be executed at that price or lower.

• Sell Limit Order: You set the minimum price you are willing to accept. The order will only be executed at that price or higher.

👉 Key points:

• Gives you greater control over the execution price and does not guarantee that the order will be executed.

• Commonly used by traders who want to enter or exit the market at a preferred price.

Example: You want to buy Bitcoin at $25,000 when the current market price is $25,200.

• You place a buy limit order at $25,000.

• The order will remain in the order book until the market price falls to $25,000 or below, at which point it may be executed.

What is Market Order

A market order is an instruction to buy or sell an asset immediately at the best available price.

• Buy Market Order: Executes immediately at the best available sell prices in the order book.

• Sell Market Order: Executes immediately at the best available buy prices in the order book.

👉 Key points:

• Offers quick execution, but the final price may vary based on the available market price at the time the order is placed.

• Commonly used by traders who prefer immediate execution over securing a specific price.

Example: You want to buy Bitcoin right away. The market price is $25,200.

• You place a buy market order.

• Your order will be executed immediately at the best available sell prices in the market. The final execution price may be higher than the displayed market price if market liquidity is limited or the order size is large.

For any questions or further assistance, please contact our 24/7 live chat service or email us at [email protected].