Limit orders are instructions sent to brokers to buy or sell assets at a specific price. The core function of these orders is to set clear price boundaries for trading. When the market price reaches or exceeds the set limit price, the order will be executed; conversely, if the market price surpasses the limit point, the order will not be triggered.
Buy limit orders are typically set below the current market price, while sell limit orders are set above the current market price. This mechanism allows traders to manage entry and exit costs more effectively.
Why mastering limit orders is crucial
For anyone looking to participate in cryptocurrency trading, understanding and utilizing limit orders is a fundamental skill. Compared to market orders, limit orders offer traders significant price control advantages.
By pre-setting target prices, you can avoid the risk of being forced to transact at unfavorable prices. This not only helps to increase profit margins but also effectively reduces potential