A limit order is an order to buy or sell at a specific 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. By placing a limit order instead of a market order, you protect yourself from buying at a price higher or selling at a price lower than you had expected.
To place a limit order:
Select the order type Limit under the Buy tab.
In this example, we are using the cryptocurrency Bitcoin (BTC). Enter the amount of BTC you would like to purchase. You can use the percentages listed below to help fill the amount. For example, if you select 25%, then this amount will be deduced from your fiat balance to fill in the BTC amount. Once you have entered the amount you wish to purchase/selected your percentage, enter the limit price. This is the price at which you wish to purchase your BTC. Clicking the empty space within this field will provide you the current asking price (the best available ask on the order book).
Once your limit price is entered, the next step is to select the type of order you would like to place. The order defaults to Good Til Cancelled. This is an order to buy or sell at a specified price which remains in effect until executed or cancelled by the investor. On Blockchain Exchange, your GTC orders remain in effect for 95 days and expire at 12:00 AM (GMT+1/Midnight in London, UK). Click here for more information on different order types.
Once the amount to trade, limit price and order type has been entered, you will be provided an estimate of the price. Click the Place BTC Order button. Your limit order will be placed once you click this.
Things to note:
- In volatile markets, although your limit order receives protection from getting filled at an undesirable price, due to the priority of other orders, your order may not be executed even if the market is trading at your limit or better after your order is entered. Similarly, the price may move away from your limit after your order is entered, in which case your order will not be executed.