A limit order is an order placed to buy or sell at a specified price or better; because a limit order is not a market order, it may not be executed if the price set by the trader cannot be met during the period of time in which the order is left open. Limit orders also allow a trader to limit the length of time an order can be outstanding before being canceled. After placing the limit order becomes to market depth as a bid price (for “buy limit” orders) or as an ask price (for “sell limit” orders) and could be filled by opposite order from a different market participant.
- Please note, ‘Limit’ order will be charged with ‘Maker’ fee.
Example: If the current market price is 120 and I want to buy lower than that at 119, then I would place a limit buy order at 119. If the market reaches 119 and a seller’s ask matches with the limit order price, the limit order would be executed at 119. If the volume of the opposite order (volume of ask price) is equal to or higher than the volume of the limit order the limit order would be filled, in other case the limit order would get a partial fill.