What are limit orders?
Limit orders are orders you place on the order book with a specific limit price. These orders will only be executed if the market price reaches your limit price (or a better price). You can use limit orders to buy an asset at a lower price or sell it at a higher price than the current market price.
When will my limit order fill?
Limit orders will only be filled when the following three conditions are met:
1. The Market Price Reaches Your Limit Price or Better
For example, if the market price is $2,400 and you place a limit buy order at $1,500, the order will only be executed when the market price falls to $1,500 or below. If the order is executed at $1,490, it is fulfilled at a better price than your limit price.
2. Sufficient Market Liquidity
If the market price is $1,500 but there are no sell orders, the buy order will not be executed. Note that an order can also be partially filled if there is enough liquidity to satisfy part of the order.
3. Sufficient Time for Order Execution
During periods of high volatility, your order might not reach the end of the order book for execution, even if the market price hits your limit price.
What are the limitations of placing limit orders?
1. Regular Trading Pairs: You can place limit orders with a price between 20% and 500% of the market price. For instance, if the market price is 100 USDT, your limit price can range from 20 to 500 USDT.
2. Stablecoin Trading Pairs: You can place limit orders with a price between 80% and 120% of the market price. For example, if the market price is 100 USDT, your limit price can range from 80 to 120 USDT.
3. Limit Buy Orders: If the limit price you set is higher than the market price, the order may be executed at a better price (lower than or equal to your limit price).
4. Limit Sell Orders: If the limit price you set is lower than the market price, the order may be executed at a better price (higher than or equal to your limit price).