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What is Limit Order Trading?

What is Limit Order Trading?

2023-05-11 18:08:36

Limit order trading includes limit buy order and limit sell order:


Limit Buy = Limit Buy Order ---- Must be traded at a price equal to or lower than the specified price


Example: The current price of Bitcoin is 12000usdt. The editor expects the future market to fall to 11000usdt and then rebound, so the editor will place an order at 11000. At this time, limit buy order is used. Only when the Bitcoin price falls to 11000 or below 11000 will the editor's order be traded.



Note: When placing a limit buy order, if the order price is higher than the current price, the order will be executed directly if there is a suitable sell order; if the order price is lower than the current price, no transaction will be made at the time of the order until the price drops to the order price.



Limit Sell = Limit Sell Order ---- Must be traded at a price equal to or higher than the specified price



Example: The current price of Bitcoin is 12000usdt. The editor expects the future market to rise to 16000usdt and then start to fall. At this time, the limit sell order is used. Only when the Bitcoin price rises to 16000 or above 16000 will the editor's order be traded.



Note: When placing a limit sell order, if the order price is higher than the current price, no transaction will be made at the time of the order; if the order price is lower than the current price, the order will be executed directly if there is a suitable buy order.

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