Limit Order

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A limit order is a common order execution strategy. A limit order is a request to buy or sell an asset, but only if you can do so at a certain price or better. A limit order will require the direction of the trade—buy or sell, the quantity to trade, and the limit price.

A limit order may also have an expiration date when the order will automatically be cancelled if it hasn’t executed yet. Unlike market orders the trader in a limit order is not guaranteed that their order will execute immediately.

A limit order may allow partial execution of the order, or it may be Fill or Kill, meaning it only executes if the entire order can be filled. Limit orders will be maker orders if the limit price is more favorable than the current spot price, or taker orders that execute immediately if the limit price can be met with the market’s existing order book