Limit Order

A limit order is a frequently used function available on trading interfaces, enabling users to purchase or sell assets at a predetermined price. Traders typically set a buy limit order below the current market price, anticipating an advantageous entry point. Conversely, a sell limit order is usually placed above the current market price to secure a more favorable selling price. If the asset price does not reach the specified limit order price, the order remains open and unfilled. In contrast, market orders are executed instantly at the prevailing market price.