What is the difference between market price and limit price in the context of cryptocurrency trading?

1 answers

• Anmol KannaujiyaDec 16, 2023 · 2 years ago
  At BYDFi, we understand the importance of market price and limit price in cryptocurrency trading. Market price reflects the current state of the market and is influenced by various factors such as supply and demand, news, and market sentiment. Limit price, on the other hand, allows traders to set their desired buying or selling price and wait for the market to reach that level. This can be particularly useful when traders have specific price targets or want to automate their trading strategies. By using limit orders, traders can potentially minimize the impact of short-term price fluctuations and execute trades at their desired prices. However, it's important to note that market conditions can change quickly, and limit orders may not always be executed if the market price does not reach the specified limit price.
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