Content of this article:
Looking for a general Spot Trading introduction and guide? Please refer to the article: Spot Trading Panel Explained.
What is a Limit Order?
A Limit Order is an order that you place on the Order Book with a specific Order Price. The Order Price is determined by you. So when you place a Limit Order, the order will only be executed if the market price reaches your Order Price (or better). Therefore, you may use a Limit Order to buy at a lower price or to sell at a higher price than the current market price.
Unlike a Market Order, where orders are executed instantly at the current market price, a Limit Order is placed on the Order Book and might not be executed immediately.
How to use a Limit Order?
*For demonstration purposes, we will only be showing you how to use a Market Order on the Pro Spot from web browser. The steps are nearly identical for Standard Spot and on the mobile app.
Let's say XT is currently trading at 3.1294 USDT/XT and you want to purchase 10 XT at the price of 3.1250. You may use a Limit Order.
- Step 1: From the trading panel, go to the order area. Select 'Spot' and 'Limit Trade'. Input the Order Price and Amount. Click 'Buy XT'
After that, your Limit Order will be placed on the Order Book and it will only be executed when the market price meet to your Order Price (or better). If the price does not meet your Order Price, your order will keep pending until the Order Price is met. You can manage/cancel your pending order in Open Orders.
When should you use a Limit Order?
You should use a Limit Order when you are not in a rush to buy or sell. Unlike a Market Order, the Limit Order will not be executed instantly, so you need to wait until your ask/bid price is reached. A Limit Order allows you to get better selling and buying prices and they are usually placed on major support and resistance levels. You may also split your buy/sell order into many smaller Limit Orders, so you get a cost average effect.