What does the term 'order type limit' mean in the context of cryptocurrency trading?

2 answers

• Dec 27, 2021 · 3 years ago
  Order type limit is a term used in cryptocurrency trading to describe a specific type of order that traders can place on an exchange. When placing a limit order, traders set a specific price at which they want to buy or sell a cryptocurrency. The order will only be executed if the market price reaches or exceeds the specified limit price. This type of order allows traders to have more control over their trades and potentially get better prices. It is commonly used to set price targets or take advantage of price fluctuations. For instance, if a trader wants to buy Ethereum at $200, they can place a limit order with a limit price of $200. If the market price reaches or goes below $200, the order will be executed. If the market price never reaches $200, the order will remain open until canceled by the trader. In conclusion, order type limit is a useful tool for traders to set specific prices for buying or selling cryptocurrencies, giving them more flexibility and control in their trading strategies.
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• Dec 27, 2021 · 3 years ago
  Order type limit is a term commonly used in cryptocurrency trading. It refers to a specific type of order that traders can place on an exchange. With a limit order, traders set a specific price at which they want to buy or sell a cryptocurrency. The order will only be executed if the market price reaches or exceeds the specified limit price. This type of order allows traders to have more control over their trades and potentially get better prices. For example, if a trader wants to sell Bitcoin at $12,000, they can place a limit order with a limit price of $12,000. If the market price reaches or goes above $12,000, the order will be executed. If the market price never reaches $12,000, the order will remain open until canceled by the trader. In summary, order type limit is a tool that traders use to set specific prices for buying or selling cryptocurrencies, providing them with more control and flexibility in their trading strategies.
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