How does a limit order work in the context of cryptocurrency trading?

1 answers

• Kaew CinhJan 25, 2021 · 4 years ago
  Hey there! So, a limit order in cryptocurrency trading works like this: let's say you want to buy Bitcoin, but you only want to buy it if the price drops to a certain level. With a limit order, you can set that specific price, and if the market price reaches or falls below that level, your order will be executed. This means you can take advantage of potential price drops and buy at a lower price. On the other hand, if you want to sell Bitcoin, you can set a limit order with a higher price, and if the market price reaches or exceeds that level, your order will be executed. This allows you to potentially sell at a higher price. It's a great way to have more control over your trades and take advantage of specific price levels. Just keep in mind that if the market doesn't reach your specified price, your order may not be filled, so it's important to set your limit order carefully.
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