How does the limit order type work in the context of digital currency trading?

3 answers

• Nov 24, 2021 · 3 years ago
  A limit order is a type of order that allows traders to specify the maximum or minimum price at which they are willing to buy or sell a digital currency. When placing a limit order, the trader sets a specific price level, known as the limit price, at which they want the order to be executed. If the market price reaches the specified limit price, the order is triggered and executed. Limit orders provide traders with more control over the execution price, but there is no guarantee that the order will be filled if the market price does not reach the limit price.
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• Nov 24, 2021 · 3 years ago
  Limit orders are a popular choice among traders because they allow for more precise entry and exit points. By setting a limit price, traders can ensure that they buy or sell a digital currency at a specific price or better. This can be particularly useful in volatile markets where prices can fluctuate rapidly. However, it's important to note that limit orders may not be executed immediately, especially if the market is moving quickly. In such cases, the order may remain open until the market price reaches the specified limit price.
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• Nov 24, 2021 · 3 years ago
  In the context of digital currency trading, the limit order type works similarly to other financial markets. Traders can use limit orders to buy or sell digital currencies at a specific price or better. The main difference is that digital currency markets are open 24/7, which means that limit orders can be placed and executed at any time. Additionally, some digital currency exchanges offer advanced order types, such as stop-limit orders, which combine the features of limit orders and stop orders. These orders are triggered when the market price reaches a specified stop price, and then executed as limit orders at the specified limit price.
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