A limit order in spot trading refers to a predetermined upper or lower price set by an investor or trader for buying or selling cryptocurrencies. When placing a limit buy order, investors aim to purchase cryptocurrencies at a price not higher than the specified limit price. Similarly, when placing a limit sell order, they aim to sell cryptocurrencies at a price not lower than the specified limit price. Limit orders are executed in the market only when the price reaches or surpasses the specified limit.
- For example, let's assume the current market price of BTC is $10,000, and an investor wishes to buy BTC at a price not higher than $9,800. They can place a limit buy order, specifying the purchase price as $9,800. If the price of BTC reaches or falls below $9,800, the order will be executed. However, if the price of BTC exceeds $9,800, the order will not be executed.