Limit Order
Order to buy/sell at exactly the specified price or better.
A limit order is an instruction to the exchange system to buy or sell an asset at a specified price or better — unlike a market order which executes immediately at market price.
How it works:
•You place a limit buy order for BTC at $60,000
•The order waits in the order book
•When the price falls to $60,000, the order executes
•If the price never reaches $60,000, the order remains unfilled
Advantages:
•Precise control over execution price
•No slippage
•Maker reward — limit orders add liquidity, most exchanges charge lower fees (maker fee)
Disadvantage:
•Execution not guaranteed — price may never reach desired level.