How to use limit order
How to use limit order
Used for pending transactions. For example, you want to buy ETH, but expect a lower price. If, according to your calculations or expectations, the price can drop to the value you need, then you can create an order that will “wait” until the price drops to the value you need and, as soon as the price reaches this value, your order is executed. You absolutely do not have to be on the exchange at this time - the limit order will independently buy for you ETH if the value of the coin reaches the value you expect.
One more example!
You think that the cost of ETH will reach 300 USDT, and would like to sell your ETH at this price. But how not to miss this moment, if there is no opportunity to watch the market around the clock? In order not to check the rate every 5 minutes, you can set a limit sell order at a price of 300 USDT. As soon as the ETH rate rises to the specified value, your pending order will be executed automatically. And ETH will be sold at the price you wanted.
By creating a limit sell order, you kind of give the broker an order "Here you have my 5 ETH, sell them only when the price is 300 USDT."
Or if you create a limit buy order you give the task "Here are my 1000 USDT, buy ETH on them, but only when the price drops to 150 USDT!"
To create an order, you need to fill in three fields (pic 1)
1 - Quantity, Here you need to specify how many currency units you want to buy or sell.
If you have only ETH Available on your balance sheet, then you can only sell.
If you have only USDT in Available, then you can only buy.
If you have ETH and USDT in Available, then you can buy and sell, for the amount you have.
In our example, in image 1, we need to indicate how much ETH we want to sell, since in Available we have only 5.2659 ETH. In our example, we will put up for sale all the ETH that is available (pic 2)
2 - Limit Price, in this field you must specify at what PRICE you want to sell
If the price of ETH reaches the values specified in this field, the order will work and ETH will be sold at the specified price.
When you create an order for SALE, when filling out the Limit Price field, if you specify a value in this field LOWER than the current market price, then the order will be executed immediately at the current market price. This is because the current market price in this case will be more profitable for sale than the one you specified in the Limit Price field.
When you create a BUY order, when filling out the Limit Price field, if you specify a value higher in this field than the current market price, then the order will be executed immediately at the current market price. This is because the current market price in this case will be more favorable for the purchase than the one you specified in the Limit Price field.
3 - In the Total field, the information is entered automatically when filling in the two previous fields. But it can also be edited,
For example, if you want to receive a certain amount from a sale, specify it in the Total field and the system will calculate how many coins you need to sell at the price you specified in order to get the necessary amount.
Below you can see in the video the full cycle of creating a Limit Order for sale.
1 - In the Quantity field indicate 4 ETH (total 5.26590942 on the balance sheet)
2 - In the Limit Price field, indicate the price at which I want to sell 180 USDT
3 - The Total field shows how much USDT I will receive in case of a sale.
4 - We press the confirmation button, we receive a notification that the order has been successfully created and we can see it in the list of open orders.