A limit order is an order with a specific buy or sell price. To place a limit order, you need to set the maximum or minimum price you want to buy or sell the asset. Your order will then be placed on the order book and only executed when the market price reaches the limit price (or better).
Unlike market orders, which trade immediately at the current price, a limit order gives you more control over the executed price. As limit orders are automated, you don't need to watch the market 24/7 or worry about missing a buy or sell opportunity while you sleep.
However, there is no guarantee that your limit order will be executed. If the market price never reaches the limit price, your trade will remain in the order book unfilled. Typically, a limit order can be placed for up to several months, but this depends on the crypto exchange you are using. WOO X system will never cancel it, but if the user will use mkt close - reduce-only orders can be closed at some points.
1. How does a limit order work?
When a limit order is submitted, it will be placed on the order book immediately. But it won’t be filled unless the coin price reaches the specified limit price (or better). For example, you want to sell 1000 WOO at $1, and the current price is $0.9. You can place a sell limit order of $1. When the WOO price reaches the target price or above, your order will be executed depending on market liquidity. If there are other sell orders placed ahead of yours, the system will execute those orders first. Your limit order will be filled afterward with the remaining liquidity.
Unless you watch the market closely, you might end up buying or selling at a less desirable price due to market volatility. For example, the current market price of WOO is $0.9, and you placed a sell limit order of 1000 WOO at $1. After a week, the price of WOO surged to $1.1. As the market price has crossed the limit price you set, your order was executed at $1. In this case, your profits were limited by the target price you placed a week ago. Therefore, it is recommended to review your open limit orders from time to time to keep up with the ever-changing market conditions.
2. How to place a limit order on WOO X?
Let’s say you want to buy WOO at a lower price than what is currently being offered. You can place a buy limit order and specify a maximum price you're willing to pay.
- Go to x.woo.org and choose either the [Standard] or [Advanced] trading page. In this example, we will use [Standard]. Log in to your WOO X account and go to [Trading] on the left navigation bar.
- Navigate to the search bar on the left top corner of the chart and enter “WOO”. Choose the WOO/USDT pair on the [Spot] tab.
- Note: All trading interfaces on WOO X can be freely personalized by the user. In this case, we used the default ones. Scroll to the downright corner box and select [Limit Order]. Then, set the price and amount you want to buy. You may also set the buying amount by clicking the percentage buttons, so you can easily place a limit sell order for 25%, 50%, 75%, or 100% of your balance. Click [Buy / Long] to confirm.
- You will see a confirmation pop-up, and your limit order will be placed on the order book.
To manage your open orders see the [Orders] box on the bottom. The limit order will only execute if the market price reaches your limit price. If the market price doesn’t reach your set price, the limit order will remain open.
3. When should you use it?
You should use limit orders when you are not in a hurry to buy or sell, limit orders are not executed right away, so you need to wait until the ask/bid price matches.