Limit order

A limit order is an instruction to buy or sell crypto only at a price you choose. The order can also be filled at a better price.

What is a limit order?

You set the limit price yourself. For a buy order, this is the highest price you’re willing to pay. For a sell order, it’s the lowest price you’re willing to accept.

The order stays open until the price is reached, the order expires, or you cancel it. This lets you decide in advance when you want to buy or sell.

Execution isn’t guaranteed. The price may not reach your limit. There may also be too little crypto available at that time to fill your entire order.

An example of a limit order

Suppose you want to buy Bitcoin, but only if the price drops to €58,000. You place a limit buy order with €58,000 as the limit price.

If the market price drops to €58,000 or lower, the order may be filled. If the price stays higher, your order remains open.

Why are limit orders important in crypto?

Crypto prices can change quickly. With a limit order, you don’t have to keep checking whether the price you chose has been reached. The order can then be filled automatically.

You may see limit orders mentioned in news about trading or price movements. That doesn’t mean a predicted price will actually be reached. An order is filled only if the limit price is reached and there’s enough supply or demand.

Check your open orders regularly. Also pay attention to how long your order stays active so you know when it will expire automatically.