An order with a set purchase or sell price is known as a limit order. You must establish a maximum and minimum price at which you are willing to purchase or sell an asset in order to make a limit order. Once on the order book, your order will only be carried out if the market price hits the limit price (or above).
A limit order gives you greater control over the execution price than market orders, which immediately execute trades at the current price. You don't need to keep an eye on the market constantly or worry that you'll miss a buy or sell opportunity while you're sleeping because limit orders are automated.
The execution of your limit order is not guaranteed, though. Your trade will not be filled on the order book if the limit price is never reached by the market price. A limit order can typically be set up for up to a few months, however it varies depending on the cryptocurrency exchange you're using.
A limit order will be immediately added to the order book after being submitted. But unless the coin price reaches the specified limit price (or above), it won't be filled. For instance, the price of 10 BNB is $500 and you wish to sell them for $600. A BNB sell limit order of $600 is permissible. Depending on market liquidity, your order will be carried out once the BNB price reaches the target price or higher. The system will execute other BNB sell orders made before yours if there are any. Your limit order will then be filled using the leftover liquidity.
The order's expiration date is another factor to take into account when establishing a limit order. Limit orders typically have a maximum duration of 90 days. Market volatility may cause you to buy or sell at a less desired price if you don't keep a careful eye on the market.
For instance, if the price of BNB is $500 at the moment and you have a sell limit order for 10 BNB at $600. After a week, BNB's cost increased to $700. Your request was filled at $600 since the market price has surpassed the limit price you specified. In this instance, the goal price you set one week previously restricted your earnings. Therefore, periodically reviewing your open limit orders is advised.
The limit order is really helpful feature as I can set my asset for buying and selling by limiting a order price because sometimes price up down when we are not reachable and we can set our desirable price anytime, anywhere. Thanks for sharing this.
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You are very right. I appreciate that you have read through my content. Thank you
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most welcome :)
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Thanks for sharing this post. It is very helpful.
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