Limit Order
A type of order to buy or sell a cryptocurrency at a specific price or better. Buy limit orders execute at the limit price or lower; sell limit orders execute at the limit price or higher.
Last updated: January 5, 2025
What is a Limit Order?
A limit order is an instruction to buy or sell a cryptocurrency at a specific price or better. Unlike market orders that execute immediately at current prices, limit orders only execute when the market reaches your specified price.
How Limit Orders Work
Buy Limit Order
- Set below current market price
- Executes when price drops to your level
- Example: BTC at $70,000, place buy limit at $65,000
Sell Limit Order
- Set above current market price
- Executes when price rises to your level
- Example: BTC at $70,000, place sell limit at $75,000
Limit Order Example
Scenario: Bitcoin is trading at $70,000
You want to buy: But only if price drops
Action: Place buy limit order at $65,000
Result:
- Order sits on the order book
- If BTC drops to $65,000, order fills
- If BTC never reaches $65,000, order stays open
Limit vs Market Orders
| Feature | Limit Order | Market Order |
|---|---|---|
| Price | You specify | Best available |
| Execution | Not guaranteed | Immediate |
| Slippage | None | Possible |
| Fees | Often lower (maker) | Higher (taker) |
| Use case | Price-sensitive | Time-sensitive |
Fee Advantage
Limit orders typically qualify for maker fees (lower):
| Exchange | Maker (Limit) | Taker (Market) |
|---|---|---|
| Binance | 0.10% | 0.10% |
| Kraken | 0.16% | 0.26% |
| Coinbase | 0.40% | 0.60% |
| MEXC | 0% | 0.10% |
On MEXC, limit orders are free!
Types of Limit Orders
Good Till Cancelled (GTC)
- Stays open until filled or cancelled
- Most common type
Immediate or Cancel (IOC)
- Fills whatever is available immediately
- Cancels remaining amount
Fill or Kill (FOK)
- Either completely fills or cancels entirely
- No partial fills
Post Only
- Only adds to order book (maker)
- Cancels if it would take liquidity
- Guarantees maker fee
When to Use Limit Orders
Best For:
- Buying dips
- Selling at targets
- Reducing fees
- Avoiding slippage
- Planned entries/exits
Not Ideal For:
- Urgent execution
- Fast-moving markets
- When you must get in/out now
Limit Order Strategies
Dollar-Cost Averaging with Limits
Set multiple buy limits at different prices:
- $65,000 - 25% of order
- $60,000 - 25% of order
- $55,000 - 25% of order
- $50,000 - 25% of order
Take Profit Ladders
Set multiple sell limits:
- $75,000 - sell 25%
- $80,000 - sell 25%
- $85,000 - sell 25%
- $90,000 - sell 25%
Common Mistakes
- Setting too far from market - May never fill
- Not checking fees - Some exchanges charge taker on limit orders that fill immediately
- Forgetting about orders - Cancel stale orders
- Placing at round numbers - Heavy competition at $70,000, $80,000, etc.
Ready to Start Trading?
Now that you understand limit order, explore the best exchanges to begin your crypto journey.