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Limit Order
A limit order is a type of order used in trading to buy or sell a cryptocurrency at a specified price or better. Unlike a market order, which executes immediately at the current market price, a limit order will only execute when the price reaches the trader’s specified target. For example, if a trader wants to buy Bitcoin at $40,000, they can place a limit order, which will only execute if the price drops to that level. Similarly, a sell limit order will only execute if the price rises to the specified target. Limit orders provide more control but may not always be executed if the price does not reach the desired level.
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