A Limit Order is one of the most prevalent and widely available order types on stock and cryptocurrency exchanges. Unlike Market Order, where a transaction to buy or sell is executed immediately, regardless of the price, a Limit Order is only executed once a given price is reached. A buy limit order is executed at the given price or lower. A sell limit order executed is at the given price or higher. This also means that the orders are placed in the order book until they are executed.
Limit Orders are beneficial for anyone who doesn’t spend a lot of time trading every day, or is in no rush to buy or sell at the current market price. A limit order may provide control over your portfolio even if you aren’t currently monitoring the stock market. Limit orders allow you to get better selling and buying prices and they are usually placed on major support and resistance levels.
Users should keep in mind that limit orders are not guaranteed to activate. This type of order will only be triggered if your order reaches the price you set. If the coin or token you want reaches a certain price threshold, then your order will go into effect.
In short, using a Limit order you can buy or sell at a fixed price (or better). Limit prices are designed to let you buy or sell exactly at the price you set, provided you set your buy-limit price below market price and your sell-limit price above market price.