A Limit Order (or "Orden a Precio Límite" in Spanish) is an instruction placed by a trader to buy or sell a cryptocurrency at a specific price or better. When buying, you set a maximum price you are willing to pay. When selling, you set a minimum price you are willing to accept.
For example, let's say the current price of Bitcoin (BTC) is $40,000, but you want to buy at a lower price. You would place a Limit Order to buy at $38,000. If the market price reaches or falls below $38,000, your order will be executed automatically, and you will buy Bitcoin at the set price or better if available.
Similarly, if you are selling Bitcoin, you might set a Limit Order to sell at $42,000. If the market price reaches or rises above $42,000, your order will be executed, and you will sell your Bitcoin at the defined price or better if available.
It's important to note that a Limit Order does not guarantee immediate execution. The order will remain in the order book until the specified conditions are met.
Always ensure you fully understand the different types of orders available on your trading platform before executing trades to avoid confusion and achieve your desired outcomes.
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