What is a limit order, and when should you use one?
Short answer
A limit order lets you set the price. A buy order only fills at your price or lower; a sell order only fills at your price or higher. If the market doesn't get there, the order waits on the order book and may never fill. You can cancel it at any time.
- Not in a hurry and want your own price? Use a limit order. Want it done now? Use a market order.
- A limit order that waits on the book is a maker order. Standard Binance spot fees are 0.1% for maker and taker alike; at OKX makers pay 0.08% and takers 0.1%.
In one line
You set the price, and the order only fills when the market gets there.
An example
Bitcoin is trading at 60,000 USDT. You place a limit order to buy at 59,000:
- The price drops to 59,000: your order fills at 59,000.
- The price never drops that far: your order just waits, and you can cancel it at any time.
Fees
If your order waits on the order book for someone to fill it, it’s a maker order. If your price can fill immediately, it’s a taker order. Standard Binance spot fees are 0.1% for both; at OKX makers pay 0.08% and takers 0.1%. If you entered a referral code when you signed up, the exchange pays part of either fee back to you.
Related
FAQ
My limit order hasn't filled. What should I do?
You can keep waiting, or cancel it and place a new one at a different price. You don't pay fees on the part that hasn't filled.
Can a limit order fill only partly?
Yes. For example, if you place an order to buy 0.1 BTC, 0.03 BTC might fill first while the rest keeps waiting.
Limit or market order: which should I use?
For a small trade you want done now, a market order is simplest. If you're not in a hurry, or you're buying a coin that doesn't trade much, a limit order protects you from slippage.