Technical Definition
Limit Order
An order to buy or sell only at a specific price (or better) that you set.
By Crypto University Editorial
MakerOrder Book
✦ Key Insight
Why It Matters: Gives price control; can get better entries/exits and often lower maker fees. Teaches patience over impulse. How It Works: Placed in order book until matched (or canceled). Buy limit: executes at your price or lower; sell limit: at your price or higher. Common Mistakes: Setting
✕ Common Misconceptions
It is often mistaken for similar sounding terms, but the technical implementation is distinct.
Detailed Explanation
Why It Matters:
Gives price control; can get better entries/exits and often lower maker fees. Teaches patience over impulse.
How It Works:
Placed in order book until matched (or canceled). Buy limit: executes at your price or lower; sell limit: at your price or higher.
Common Mistakes:
Setting unrealistic prices (never fills); forgetting to cancel old orders.
FAQs
Better than market?
Yes for control and cost savings.
Guaranteed fill?
No — only if market reaches your price.
In Practice
“Set buy limit for SOL at $140 when current price is $145 — order waits until price drops to $140 or below.”
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