Limit Order

A limit order is an order to buy or sell a stock at a specific price or better. It doesn't guarantee your trade will be executed; however, it'll only be executed if the market reaches the price you've set. Simply put, it will ensure that you do not buy higher or sell lower than you want.

• A buy limit order is an order to buy at a specific price or lower
• A sell limit order is an order to sell at a specific price or higher
• Consider an example where the current market price of a stock is $100
• If you place a $95 buy limit order, it will be completed only when the price falls to $95 or lower
• If you set a sell limit order at 110$, it will only be executed once the price reaches 110$ or higher

The same logic applies to cryptocurrencies: replace stock with cryptocurrency.