Limit Order
trading
An order to buy or sell an asset at a specified price or better, without guaranteeing execution.
A limit order instructs an exchange to trade only at the specified limit price or a better price. It offers price control, but it may sit unfilled if the market never reaches that level.
Limit orders can add liquidity when they rest on the order book, or remove liquidity if they immediately match an existing order. A partially matched limit order can pay a taker fee on its immediate fill and a maker fee if the resting remainder fills later. The maker/taker fee examples show how to calculate both portions.
Limit orders can fill partially, fill over time, or never fill. Large orders may reveal intent, and fast markets can move away before the order executes.
Common time-in-force and execution options include Good-Till-Canceled (GTC), Immediate-Or-Cancel (IOC), Fill-Or-Kill (FOK), and post-only. Each option changes how long the order remains active and whether partial fills are allowed.
Related terms
Market Order
→An instruction to trade immediately against available orders, prioritizing execution over a guaranteed price.
trading · exchange
Liquidity
→How easily an asset can be bought or sold in size without causing a large price move.
finance · trading
Bid-Ask Spread
→The difference between the highest bid and lowest ask price for an asset.
trading
Maker vs. Taker Fees
→Learn when maker or taker fees apply, why a limit order can pay both, and how to calculate trading fees with a worked example.
markets · trading