Use limit orders to get a specified price or better
Using a limit order is the surest way to guarantee a certain price, and it is appropriate if getting a specific price (or better) is more important than getting the order filled.
Limit orders let you enter and exit trades with precision; however, you have to enter them correctly to ensure they accomplish the goal of improving price – that is, to get a specified price or better. It’s important to be on the right side of market, otherwise you’ll get filled at the market price. When placing a buy limit order, specify a price that’s at or below the current bid. For a sell limit order, specify a price that’s at or above the current ask.
Note: Current Bid and Ask values can be seen at the top of the order book on your Trade page
When would I use a limit order?
When Buying - to buy the dip
Suppose you are interested in buying a certain crypto-currency, but you believe that it is currently overpriced, so you expect the price to drop in the near future. This is the perfect scenario to unleash the Buy Limit order.
Let's say DASH is currently trading at $1,000, and you are willing to buy 10 units at a price of $900 a piece. You would place a Buy Limit order like so:
Once placed, this order will be added to the Bids columns of the order book, and will execute as soon as the price drops down to $900. Your pending orders can be seen at the bottom of the Trade page.
When Selling - to sell high
Suppose now you own some ether (ETH), and you are looking to turn a profit when its price goes up to a certain level. That's when you might want to deploy a Sell Limit order.
Let's say current price of ETH is $700, you own 5 units, and you want to cash out when the prices breaches $1,000. You would place a Sell Limite order like so:
Once placed, this order will sit in the Asks column on the order book, until the price reaches $1,000, at which point the trade will execute. Your pending orders can be seen at the bottom of the Trade page.
How do I cancel a Limit Order?
Unlike traditional stock exchanges, Limit Orders do not have an expiry date, so your orders will stay pending until they execute, or until you cancel them at the bottom of the Trade page.