A limit order is used when you want to buy or sell your crypto at the price of your choosing. You decide which price you want to buy or sell your crypto asset and you set the price yourself. The trade will only be executed if the market price reaches your limit price.

The main objective of using a limit price is to buy your crypto at a lower price or to sell your crypto at a higher price than the current market price.

For example; you have review the trading market and price action and you want to buy BNB, but BNB is currently at 31 USDT, you can set a limit price to buy BNB when it gets to 28 USDT. Of course you must have done your technical analysis to know if BNB might be coming down to that price before setting your limit to buy at that price.

Also, let’s say you want to sell BNB at a higher price, maybe after buying it at 28 USDT you want to sell when it get to 35 USDT since you’ve been observing a lot of price action and rejection at that point. You can also set a sell limit closer to that point to take your profit.

Note that the limit order will only execute if the market price reaches your limit price (the price you set). If the market price doesn’t reach the price you set, the limit order will remain open.

The best time to make use of the limit order is; when you are not in a rush to buy or sell because it allows you to get better selling and buying prices and you can only achieve that when you know the major support and resistance levels of the asset you want to buy or sell. That’s why it always best to buy close to the level of support and sell close to the level of resistance.

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What Is Limit Order In Cryptocurrency Trading?

Posted by admin on January 13, 2021

cryptocurrency


A limit order is used when you want to buy or sell your crypto at the price of your choosing. You decide which price you want to buy or sell your crypto asset and you set the price yourself. The trade will only be executed if the market price reaches your limit price.

The main objective of using a limit price is to buy your crypto at a lower price or to sell your crypto at a higher price than the current market price.

For example; you have review the trading market and price action and you want to buy BNB, but BNB is currently at 31 USDT, you can set a limit price to buy BNB when it gets to 28 USDT. Of course you must have done your technical analysis to know if BNB might be coming down to that price before setting your limit to buy at that price.

Also, let’s say you want to sell BNB at a higher price, maybe after buying it at 28 USDT you want to sell when it get to 35 USDT since you’ve been observing a lot of price action and rejection at that point. You can also set a sell limit closer to that point to take your profit.

Note that the limit order will only execute if the market price reaches your limit price (the price you set). If the market price doesn’t reach the price you set, the limit order will remain open.

The best time to make use of the limit order is; when you are not in a rush to buy or sell because it allows you to get better selling and buying prices and you can only achieve that when you know the major support and resistance levels of the asset you want to buy or sell. That’s why it always best to buy close to the level of support and sell close to the level of resistance.

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