A limit order is an order to buy or sell a specific number of contracts at a designated price or better. It gives you full control over the price and quantity of your trade.
How Does It Work?
A buy limit order executes at or below the price you set.
A sell limit order executes at or above the price you set.
If the market price doesn’t reach your specified price, the order remains unfilled.
Why Use a Limit Order?
You get precision in execution — exact price and quantity.
It’s ideal for strategic entries/exits.
It reduces the risk of unfavorable fills, especially in volatile markets.
However, speed is sacrificed. Your order may not get filled if the price doesn't reach your target.
Example
If BTC is trading at $100, you can place a limit buy order at $95, expecting a dip.
This order will only execute if the price drops to $95 or below ensuring your desired entry point is met.
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