Definition
A limit order sets a price boundary: a buy cannot execute above the limit, and a sell cannot execute below it. This gives price control but leaves execution dependent on available counterparties and the order’s priority.
How It Works
A hypothetical buy limit of 100 USDT can fill at 100 or less, not at 101. If the best ask is already 99, it may execute immediately at that better price and act as a taker. Otherwise it may rest in the book as a maker. Partial execution is possible, with the remainder handled according to the time-in-force instruction.
Key Considerations
Reaching the limit price does not ensure a fill if other orders are ahead or available quantity is insufficient. The limit controls the trade price, not the all-in cost after fees. Post-only instructions can help avoid immediate taker execution, but may cause cancellation rather than a completed trade.