A limit order is an order that lets you buy or sell digital assets at a price you set. It allows traders to set the maximum or minimum price at which they are willing to buy or sell digital assets.
There are currently two types of limit orders:
Buy Limit Order: This is used when a trader wants to buy digital assets at a price lower than the current market price. For example, if the current market price of Bitcoin is MYR 130,000, a trader can place a buy limit order at MYR 122,000. If the market price drops to MYR 122,000 or lower, the buy order will be executed.
Sell Limit Order: This is used when a trader wants to sell digital assets at a price higher than the current market price. For instance, if the current market price of Ethereum is MYR 8,000, a trader can place a sell limit order at MYR 9,000. If the market price reaches MYR 9,000 or higher, the sell order will be executed.