π― Limit Order Limit Order
An instruction to buy or sell crypto only at a price you choose β or a better one β instead of whatever the market price happens to be right now. You name the price; the order waits until the market reaches it.
π― The simple version β a price you wait for
When you trade on an exchange, you usually pick between two buttons: Market and Limit. A market order buys or sells right now at whatever price is on offer. A limit order is different: you name the exact price you're willing to act at β and that price sits at its own level, waiting. A buy limit waits below today's price; a sell limit waits above it. The trade only happens if the market price travels up or down to your level. Picture it like a bid at an auction, or a 'buy it for me when it drops to this price' alert. You decide your price and walk away. If the market never reaches your number, you simply don't trade.
πΌ Buy limit vs sell limit
The word "limit" means a boundary you won't cross. Which way the boundary points depends on whether you're buying or selling.
| Order | What your price means | It fills at⦠|
|---|---|---|
| π’ Buy limit | The most you'll pay | Your price or lower |
| π΄ Sell limit | The least you'll accept | Your price or higher |
π That's what "at your price or better" means: better is always in your favor β cheaper when buying, richer when selling.
βοΈ Limit order vs market order
Each order type trades away one thing to gain another. A market order gives up control over price to get a near-certain fill. A limit order gives up the certainty of filling to get control over price.
| π― Limit order | β‘ Market order | |
|---|---|---|
| Price | You set it (guaranteed) | Whatever's available now |
| Fill | Only if market reaches your price | Almost always, right away |
| Best for | Patient target entries/exits | Getting in or out fast |
π Why beginners use it
- π― Hit a target price β Set the price you want to buy or sell at, then step away. No need to watch the screen all day.
- π Less slippage β In a fast-moving market, a market order can fill at a worse price than you expected. A limit order locks the price in. See slippage.
- π It's a basic button β On exchanges like Binance, Coinbase, or Kraken, "Limit" sits right next to "Market" when you place a trade.
π¨ Things to keep in mind
- β It might never fill β If the price doesn't reach your level, the order just sits open on the order book or expires unused.
- 𧩠Partial fills happen β If only part of the market trades at your price, you may get some of your order filled and the rest left waiting.
- β° Set too far away? β A price the market never visits means no trade at all, just like if you'd done nothing.
β FAQ
- Is a limit order guaranteed to fill?
- No. If the market never reaches your price β or only touches it for a moment without enough trading to fill the whole order β you get a partial fill or no fill at all. A price the market never reaches is the same as placing no trade.
- What's the difference between a limit order and a market order?
- A market order fills right away at whatever price is available, so it almost always executes but you don't control the price. A limit order lets you set the price, but it only fills if the market comes to that price, so it may sit open or never fill.
- What does 'or better' mean on a limit order?
- A buy limit fills at your price or lower (you never pay more than you set), and a sell limit fills at your price or higher (you never accept less than you set). 'Better' always means in your favor.