What Are Limit Orders and Market Orders?

When placing buy or sell orders in trading, the most commonly used order types are limit orders and market orders. You can choose the order type based on your personal needs.

Limit Orders

A limit order allows users to set the order quantity and the highest acceptable buy price or lowest acceptable sell price. When the market price meets the user's expectations, the system will execute the order at the best available price within the specified limit.

Example: If the current market price of BTC is 53,000 USDT and you want to buy at a cheaper price of 52,900 USDT, you can place a limit order with a buy price of 52,900. After placing the order, it will automatically execute when the price drops to 52,900 USDT or below.

Market Orders

A market order allows users to buy or sell immediately at the best available current market price, achieving quick execution.

Example: Suppose the latest BTC transaction price is 53,000 USDT. If a user wants to buy BTC quickly at the market price, they can place a market order and enter the total amount, such as 40 USDT. After placing the order, it will be executed immediately. In a fast-moving market, the execution price of the market order may not be exactly 53,000 USDT but the real-time market price, which could be higher or lower than 53,000 USDT.