A limit order names the exact price you will trade at. You get price control and you may not fill. A buy limit at $100 fills only at $100 or lower. A sell limit at $110 fills only at $110 or higher. If the market never reaches the price, you keep the position and miss the move.
Limit orders supply liquidity on order books and define tradable prices. Professionals use them to avoid slippage instead of taking whatever the market offers, especially on size. Time-in-force sets lifetime. Good-Till-Cancelled stays up. Immediate-Or-Cancel fills now or cancels. Fill-Or-Kill fills completely or cancels. On-chain matching is slow relative to a CEX.
Protocols such as 0x and CoW Protocol keep orders off-chain and settle on-chain. Some DEXs use keepers that execute when conditions hit. A limit order specifies the exact price at which you're willing to trade, providing price certainty at the cost of execution uncertainty.
A buy limit at $100 executes only if the price drops to $100 or below; a sell limit at $110 executes only if price rises to $110 or above. Limit orders are core to order book markets, where they provide liquidity and define the price levels at which trades can occur. This is especially important for large orders where market orders would move price against the trader.
A limit order sets the worst price you will take. It may not fill. A market order fills at whatever is there.
Limit Order Trading
Set your desired buy/sell prices and watch how limit orders execute only when market conditions meet your criteria
Market Price: $105.00
Buy Limit Order
Sell Limit Order
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