- Limit order: execute a trade at a specified price or better (limit price).
A limit order to buy is filled at the limit price or lower, and a limit order to sell is filled at the limit price or higher.
Limit orders are used by traders who have decided on the price at which they are willing to trade.
As soon as you create an order of this type, a specified amount of funds is being reserved on your account. You can see it on your account in the “On orders” column.
Limit orders appear in the order book and create liquidity for the market.
- Stop limit order: create a limit order at a specific price (stop price)
When the stop price is reached, a stop-limit order becomes a limit order. So you're specifying two prices: a stop price, which, once reached, triggers the creation of a limit order, and a limit price for that limit order. Please note that the stop price for a buy stop limit order should be greater than the current best ask price, otherwise this order will be placed immediately. Similarly, the stop price for a sell stop limit order should be lesser than the current best bid price, otherwise, this order will be placed immediately.
This type of order doesn't require reserved funds. It does not appear in the Active orders list and the order book until it's activated.
Subtypes of limit orders
Good-Till-Cancelled: lasts until the order is completed or canceled.
Day: automatically expires if not executed on the day the order was placed. A day ends at 00:00 UTC time.
Good-Till-Date/Time: automatically expires at the specified date and time.
Fill-Or-Kill: must be executed immediately in its entirety, otherwise, the entire order will be canceled (i.e., no partial execution of the order is allowed).
Immediate-Or-Cancel: must be executed immediately. Any part of an IOC order that cannot be filled immediately will be canceled.
Tip: to find out how to cancel your order, please proceed to How to cancel my orders.