A limit order requires you to specify a predetermined price. The order will only be executed when the current market price reaches or exceeds the predetermined price of the limit order. When placing a buy order, you need to set the highest price you are willing to pay for the asset. When placing a sell order, you need to set the lowest price you are willing to sell the asset for.
Limit orders will not be automatically canceled and will be executed automatically when the market price reaches your predetermined price.
Example of limit order: assuming the current market price of BTC/USDT is 100, and the following orders are available in the order book:
| — | Price | Size |
|---|---|---|
| ASK 2 | 100 | 0.1 |
| ASK 1 | 99 | 0.2 |
Suppose you place a buy limit order with a limit price of 100 and a size of 0.1. Your order will generate the following trades:
Trade1: Price = 99, Size = 0.1
As a result, your order will be fully filled at an average price of 99.