Are you new to crypto? Get Started Here!
A limit order is defined as a request to buy or sell an asset (stock, crypto, etc) at an exact price or better. A limit order’s priority is price. Compare with Market Order.
A limit order is used to purchase or sell an asset at a price that would get you the best price and maximize your profit. It is best used when your priority is profit rather than speed.
- A buy limit order will only be executed if the price meets your limit order or is lower (more affordable).
- A sell limit order will only be executed if the price meets your limit order or is higher (more profitable).
The risk with limit orders is that if the asset you want to buy never reaches your targeted price range, your order will not execute. An additional risk is that even if your target price is reached, the number of freely available assets may be limited and so you may not be able to purchase the entire quantity you ordered.
Found a word to add? Click here to provide suggestions!« Back to Dictionary