Limit Order Setup
Buy Limit Order Setup
Sell Limit Order Setup
A limit order and a market order are two of the most common order types, and traders should understand their pros and cons before they use either.
When trading cryptocurrencies, you are typically either buying an asset or selling it. In order to be profitable, traders generally want to buy low and sell high (i.e., going long), or they want to sell high first and buy low later (i.e., going short). All of these trades are ultimately executed on an exchange, and the market price of an asset at any time reflects the last price it was traded on.
If you want to buy 1 BTC right now, you can open the spot market for BTC on OKX and place a market order to buy 1 BTC. You will only need to specify the amount of BTC for this order, and not its price, as the exchange will fill your order at whatever the market rate is at that time.While this will get you your 1 BTC rather quickly, you will have no control over your buying price. Traders typically want to buy and sell cryptocurrency at set prices in order to make a profit, which is why the market order function is not always suitable for them.
This is where the limit order comes in, as it allows you to set a specific price for your buy or sell order and asks the exchange to fill your order only if the market is willing to meet your price or do even better. The downside of using a limit order is that there is no guarantee that your trade will go through, due to the fact that you will need to wait for the market to meet your demand.
A limit order is just one of many order types offered by OKX to help traders execute their own trading strategies based on their chosen prices for entries and exits.