A Limit Order is an instruction that a trader places to buy or sell a cryptocurrency at a specific or better price. When buying, you set a maximum price at which you're willing to purchase. When selling, you set a minimum price at which you're willing to sell.
For example, let's say the current price of Bitcoin (BTC) is $40,000, but you want to buy at a lower price. You would place a Limit Order to buy with a price of $38,000. If the market price reaches or falls below $38,000, your order will automatically execute, and you'll buy Bitcoin at the set price or a better price if available.
Similarly, if you're selling Bitcoin, you could set a Limit Order to sell at $42,000. If the market price reaches or goes above $42,000, your order will execute, and you'll sell your Bitcoin at the defined price or a better price if available.
It's important to note that a Limit Order doesn't guarantee immediate execution. The order will remain in the order book until the required conditions are met.
Remember that it's always essential to fully understand the different types of orders available on the trading platform before making trades to avoid confusion and achieve desired outcomes. More information on Exchange Pro.