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What is a Limit order?

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A limit order is the type of order that allows you to specify the minimum price you are willing to pay or the maximum price you are willing to spend when buying/selling an asset respectively. Limit orders are not filled immediately, but rather when the specified limit price (or better price) is reached. While this type of order ensures that your trade will only be executed at a specified rate, the execution itself is not guaranteed, as the desired limit price might never be reached.

 

Limit orders are best utilized when you wish to buy/sell at a price different from the current quote and expect the price of the asset to reach the specified limit.

 

Limit order conditions:

 

  • GTC (Good Till’ Canceled). GTC orders remain active until the specified limit price (or better price) is met, regardless of whether the order is filled entirely or only a part of the order is filled, or until the user cancels the order.

 

Example: You place a GTC order to sell 1 BTC at the specified limit price of 30,000 USDT. Another market participant purchases 0.5 BTC at the rate of 30,000 USDT for a total of 15,000 USDT. The remaining part of your order, namely 0.5 BTC, remains on the market to be filled at the specified limit rate (1 BTC for 30,000 USDT), or to be precise, for 15,000 USDT. The order will remain active until either the limit price is available or the order is canceled by you.

 

  • IOC (Immediate or Cancel). Orders under the Immediate or Cancel requirement aim to exchange a portion of the amount that can be filled by the market immediately. The rest of the order (unfilled amount) will be canceled automatically. 


ExampleYou place a sell order under IOC conditions for a total of 1 BTC at the limit price of 30,000 USDT. The market can fill the order at this rate only partially: the amount of 0.5 BTC can be sold for 15,000 USDT, however, the remaining 0.5 BTC cannot be filled immediately at this rate. The remaining order will be canceled and the unfilled amount of 0.5 BTC will be returned to your balance.


To place a Limit order on the Nexo Spot Exchange, please review the following Help Center article: How do I open a trade on the Spot Exchange?

 

Important: For the time being, the only type of Limited orders available are GTC and IOC.

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