Binance, Exchanges

What Is Limit Order on Binance?

A limit order is an order to buy or sell a security at a specified price or better. A buy limit order can only be executed at the limit price or lower, and a sell limit order can only be executed at the limit price or higher.

A limit order is not guaranteed to execute, but if the security’s market price reaches the limit price, the order will likely execute.

Limit orders are often used by investors who have a specific price Target in mind for a stock and do not want to risk missing out on the trade. They can also be used to protect profits by setting a sell limit order at a higher price than the current market price, or to minimize losses with a buy limit order at a lower price.

NOTE: WARNING: Limit orders on Binance are orders to buy or sell digital assets at a specified price. While limit orders can be beneficial for investors who wish to buy or sell assets at a specific price, they are also subject to market risks. Market prices may change quickly, and as such, limit orders may not be filled in the time frame desired or at the specified price. Additionally, depending on the type of order, extra fees may apply. It is important to understand the risks associated with limit orders before placing an order on Binance.

While limit orders do not guarantee execution, they are generally filled more often than market orders. This is because market orders are subject to the liquidity of the market and the trading activity of other market participants, while limit orders are only limited by the trader’s desired price.

A limit order can be placed with any broker that offers trading in the security of interest. To place a limit order, the trader will need to specify the security, the desired quantity, the limit price, and whether it is a buy or sell order.

Once placed, the order will stay active until it is either filled or canceled by the trader.

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