Limit order – Limit order is a type of order placed by the user on the order book at a certain limit price or better. This price limit is determined by the user. Therefore, when a user places a limit order – a Limit order, the trade will only be executed when the market price reaches that limit price. From there, users can use limit orders to buy at a lower price or sell at a higher price than the current market price.
Not like the market order – Market order where the trade is executed immediately at the current market price, limit orders – Limit orders will be placed on the order book and will not be executed immediately, thus saving the user fees apply to “market maker”.
Instructions for placing limit orders – Limit orders
For example, you want to sell copper SFP at a higher price than the current bid price.
Step 1: Log into Binance account your.
Step 2: In the search box type “SFP” and select the desired trading currency pair (for example, select the SFP/USDT pair).
Step 3: At the transaction interface select “Sell”.
Step 4: In the order entry, select the order Limit and set price and quantity want to sell. Check the information again and press “Sell”. Also available % of total balance volume options for easier setup like 25%, 50%, 75% and 100%.
Your limit order will be successfully placed on the order book. You can manage your unfilled orders by scrolling down to pending orders. The limit order will be executed only when the market price reaches the limit price you set. If the market price does not reach there, the limit order will always be pending.
When to use limit orders – Limit orders?
Limit orders – Limit orders are often used when users are not in a hurry with buying and selling. Unlike market orders, limit orders are not executed immediately, so you need to wait until the market price reaches your bid/ask point. Limit orders allow users to buy and sell at better prices, these prices are usually set against strong support and resistance levels. Users should divide buy/sell orders into smaller limit orders to apply price averaging effect.
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