A limit order is an order to buy or sell a specific number of contracts at a designated price or better. It gives you full control over the price and quantity of your trade.
How Does It Work?
A buy limit order executes at or below the price you set.
A sell limit order executes at or above the price you set.
If the market price doesn’t reach your specified price, the order remains unfilled.
Why Use a Limit Order?
You get precision in execution — exact price and quantity.
It’s ideal for strategic entries/exits.
It reduces the risk of unfavorable fills, especially in volatile markets.
However, speed is sacrificed. Your order may not get filled if the price doesn't reach your target.
Example
Current BTCUSD price: 67,500
Buy Limit Order:
If you place a Buy Limit Order at 67,000, the order will only be executed if the market price drops to 67,000 or below.
Sell Limit Order:
If you place a Sell Limit Order at 68,000, the order will only be executed if the market price rises to 68,000 or higher.