What is a limit order?
Limit Buy and Sell Orders Explained
A limit buy order is an order to purchase a cryptocurrency at a specific price or lower. For example, if you placed a limit buy order for bitcoin at $10,000, you would be willing to buy bitcoin at a price of $10,000 or lower. If the price of bitcoin drops to $10,000 or lower, your limit buy order will be filled and you will purchase bitcoin at the specified price or lower.
A limit sell order is an order to sell a cryptocurrency at a specific price or higher. For example, if you placed a limit sell order for bitcoin at $10,000, you would be willing to sell bitcoin at a price of $10,000 or higher. If the price of bitcoin increases to $10,000 or higher, your limit sell order will be filled and you will sell bitcoin at the specified price or higher.
Limit orders can be useful for traders who want to set specific prices at which they are willing to buy or sell a cryptocurrency. They can also help to protect against potential losses by allowing traders to specify the maximum price they are willing to pay for a cryptocurrency or the minimum price at which they are willing to sell it. However, it is important to note that limit orders may not always be filled, particularly if the market price of the cryptocurrency does not reach the specified limit price.
Pros of a limit order:
- It allows you to set the specific price you are willing to buy or sell a cryptocurrency.
- It protects against potential losses by allowing you to specify the maximum price you are willing to pay for a cryptocurrency or the minimum price at which you are willing to sell it.
- It can potentially help you get a better price for your trade.
- It does not require you to keep tabs on the market.
Cons of a limit order:
- It may not always be filled, particularly if the market price of the cryptocurrency does not reach the specified limit price.
- It may require you to constantly monitor the market and adjust your limit orders as the price of the cryptocurrency changes.
How do I place a limit order on Ndax?
On Desktop
- Go to the Ndax website (https://ndax.io/) and log in to your account.
- Once you are logged in, you will be taken to your dashboard.
- On the left-hand side of the dashboard, click the TRADE button.
- On the trade page, you will see a BUY and SELL button on the right side of the screen. If you want to buy cryptocurrency, click the BUY button. If you want to sell cryptocurrency, click the SELL button.
- To select the cryptocurrency/CAD pair you want to trade, click the small grey arrow in the upper left corner of the screen. From the dropdown menu, select the desired pair.
- To place a limit order, click the LIMIT button.
- In the ORDER SIZE field, enter the amount of cryptocurrency you want to buy or sell.
- In the LIMIT PRICE field, enter the specific price at which you want the order to be filled. This should be the maximum price you are willing to pay for a buy order or the minimum price you are willing to sell for a sell order.
- Once you have entered the necessary information, click the PLACE BUY/SELL ORDER button to submit your limit order.