#OrderTypes101

What is a Limit Order?

Simply put, a limit order allows you to specify the maximum price you're willing to pay when buying an asset, or the minimum price you're willing to accept when selling an asset. Unlike a market order, which executes immediately at the best available current price, a limit order will only execute if the market price reaches your specified limit price or better.

How Does it Work?

* Buy Limit Order: If you want to buy 100 shares of Company X, and you believe $50 per share is a good entry point, you would place a buy limit order at $50. Your order will only be filled if the price of Company X drops to $50 or lower. If the price never hits $50, your order won't be filled.

* Sell Limit Order: Conversely, if you own 50 shares of Company Y and want to sell them for at least $100 per share, you'd place a sell limit order at $100. Your order will only be filled if the price of Company Y rises to $100 or higher. If it never reaches that level, your shares won't be sold through this order. $BTC $ETH