Can you explain the concept of limit price in cryptocurrency trading?

1 answers

• Jonathan FriedrichOct 14, 2023 · 2 years ago
  Limit price is an important concept in cryptocurrency trading. It allows traders to set a specific price at which they want to buy or sell a cryptocurrency. This can be useful for traders who have a target price in mind and want to execute a trade only when the market reaches that price. For example, if a trader wants to buy Ethereum at a price of $400, they can place a limit buy order with a limit price of $400. If the market price of Ethereum reaches or goes below $400, the trade will be executed. Similarly, if a trader wants to sell Ethereum at a price of $500, they can place a limit sell order with a limit price of $500. If the market price of Ethereum reaches or goes above $500, the trade will be executed. Limit price orders give traders more control over their trades and can help them avoid making impulsive decisions based on short-term price fluctuations.
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