How do I set prices for limit orders?

What does limit price mean?

The limit price is the price at which you want a limit order to be fulfilled or better.

  • A limit order buy can only be executed at the limit price or lower
  • A limit order sell can only be executed at the limit price or higher

The price you set for limit orders depends on how quickly you want the order to fill and on your opinion about where price will be in the future.

If you are willing to wait and think that price will move in your favor in the future, then just set the limit buy or sell price to where you think price will move in the future.

If you want the limit order to fill as quickly as possible, look at the current order book to determine your limit price. You can find the order book under the "Order Book" tab at the bottom of your order form.

Buy Example

Suppose you want to buy 10 bitcoins. 

Maker price: If you are patient and think the price might fall, and you want to get the reduced maker fee, then enter a Buy price that is lower than the lowest priced order on the Sell side. In the screenshot below, you'd need to enter a price of 3,999.9 USD or lower.

Taker price: Any limit price equal to or higher than the existing orders on the Sell side will get matched right away and incur a taker fee

The benefit of a limit price in this situation (versus a market order) is that it controls against price slippage (i.e. how far down the order book your order can go). However, depending on the size (volume) of the Sell orders, your Buy order may only get filled partially. 

For example, there are only 13.541 XBT available for 4,000.0 USD. If you want to buy more XBT than that, you'll need to look at the price and volume of the next sell order (1.657 XBT at 4,000.4 USD).

Limit-price-buy-example.png

Note: prices in the order book may change by the time you place your order. If you only want your order to execute as a marker, select the "Post limit order" option on the Intermediate order form. This feature will cancel your limit buy order if it matches against the sell side of the order book.

Sell Example

Suppose you want to sell 10 bitcoins. 

Maker price: If you are patient and think the price might rise, and you want to get the reduced maker fee, then enter a Sell price that is higher than the highest priced order on the Buy side. In the screenshot below, you'd need to enter a price of 4,000.0 USD or higher.

Taker price: Any limit price equal to or lower than the existing orders on the Buy side will get matched right away and incur a taker fee

The benefit of a limit price in this situation (versus a market order) is that it controls against price slippage (i.e. how far down the order book your order can go). However, depending on the size (volume) of the Buy orders, your Sell order may only get filled partially. 

For example, a buyer is interested in purchasing 0.512 XBT at 3,999.9 USD. If you want to sell more XBT than that, you'll need to look at the price and volume of the next buy order (0.018 XBT at 3,998.4 USD).

Limit-price-sell-example.png

Note: prices in the order book may change by the time you place your order. If you only want your order to execute as a marker, select the "Post limit order" option on the Intermediate order form. This feature will cancel your limit sell order if it matches against the buy side of the order book.