Limit Order: An instruction to buy or sell on an exchange at a specific pre-set price or better.
The main purpose of this type of order is to control the price of the trade, which does not guarantee instant execution.
To place the Buy Limit Order, the target price must be set lower than the Last Trader Price, or it will be filled as a Market Order. The opposite applies to the Sell Limit Order, where the target price must be set higher than the Last Traded Price. The Last Traded Price is the internal price index of a cryptocurrency on the exchange. Limit Orders ensure that the order is not filled at a price less favorable than the set target price.
A variety of order types are available when trading digital assets on an exchange. Some guarantee execution, others guarantee price. Each type of order is a tool that serves to achieve a certain goal. Both Market Orders and Limit Orders are currently available on BTCMEX - innovative Bitcoin Perpetual Contracts trading platform. Explore the Perpetual Contract Trading Guide.
While placing an order on BTCMEX you can select the order type in the top left corner.
BTCMEX Trading Codex - the most accurate definitions of Cryptocurrency Trading Terms