A limit order is an order that you can place on the order book with a specific limit price that you determine. This type of order will only be executed if the market price reaches your limit price or exceeds it. It can be a useful tool for buying at a lower price or selling at a higher price than the current market price.
Advantages of a limit order
- Offers control over price
If you would like to have greater control over your investments, limit orders may help capture the price you're willing to buy or sell at.
- Can be set for future trades
By placing a limit order above or below the current market price, you can establish automated commands for the execution of limit orders at a future target price.
Disadvantages of a limit order
- Your order may not be executed
The risk with a limit order is that there are no guarantees that the order will actually go through. Because the price may never reach your limit if the trend turns the direction, and you could potentially miss an opportunity.
- Orders may be partially filled
Limit orders can only be executed if pricing conditions are met. If there is not enough liquidity in the order book for set price, placed limit order will be partially filled only with the available amount, and the other part will be waiting for the liquidity to appear in the order book for set price.
Market and limit orders are different in the following criteria:
| Market order | Limit order |
|---|---|
| Filled immediately | Filled only when the specified price is reached |
| Confirmed manually | Can be set in advance and confirmed automatically |
| Purchases asset at the current market price | Purchases asset at the specified price |
If you would like to place limit orders on Blocktrade, it is possible to do it from Trade - Advanced trading section:
After you select trading pair, you can navigate to limit orders on the right of the page:
You need to set three parameters:
- Type of order: Buy/Sell
- Desired price for the order to be filled at
- Amount to buy or sell
Order value and estimated fees will be calculated automatically. If you agree with parameters, you can click Buy button:
Then you will need to confirm the order once again:
⚠️ If you would like to skip double confirmation in the future, you can tick an option not to ask double confirmation.
After that you will be able to see your order in Order book and in Active orders below. You can check there if the order is filled partially or not.
If you do not want the order to be filled anymore, you can cancel it by clicking on the relevant button:
As soon as the order is filled or cancelled, it is moved out of Order book and Active orders to History. All these actions are additionally shown as pop-up messages on the top right corner:
If you have any questions, do not hesitate to contact our Support team.