Quick answer
A limit order sets the worst acceptable price at which a trade may execute.
What is Limit order?
A limit buy can execute at its limit price or lower, while a limit sell can execute at its limit price or higher. It may remain unfilled if the market never reaches the requested price or available liquidity is insufficient.
The useful way to approach this term is to separate its definition from the assumptions people often attach to it. In crypto, the same word can appear in a protocol rule, a user interface, a market-data label, or a marketing claim. Check which layer the explanation is describing.
Why does limit order matter?
Limit orders provide price control but not execution certainty. Users should understand time-in-force rules, partial fills, maker/taker fees, and what happens when an order expires.
Concrete example
See it in a real situation
A trader places a limit buy for 0.5 BTC at $60,000. The order executes only at $60,000 or less under the venue’s matching rules.
Common misconceptions
What this term does not mean
- A limit order is not a guarantee that the trade will happen.
- A displayed limit price does not include every fee or tax that may apply to the user.
Related terms
Sources and further reading
Definitions are written for education and checked against the sources below where relevant. A source can explain a protocol or rule without endorsing every product built around it.