What Is a Limit Order?
A limit order is an instruction to buy or sell an asset at a specific price or better. A limit buy order executes at the specified price or lower; a limit sell order executes at the specified price or higher. Unlike market orders, limit orders sit in the order book until the price is reached.
How Limit Orders Work
If BTC is trading at $65,000 and you place a limit buy at $64,000, your order will only fill if the price drops to $64,000 or below. If the price never reaches your limit, the order remains unfilled. This gives you price control but no guarantee of execution.
Why It Matters for Traders
Limit orders prevent slippage and give you control over entry and exit prices. They also earn you the "maker" fee (typically lower than "taker" fees) on most exchanges, since limit orders add liquidity to the order book. Strategic placement of limit orders at key technical levels — support, resistance, and liquidation clusters — is a cornerstone of professional trading.
