How does a limit price impact the execution of cryptocurrency trades?

3 answers

• Nov 27, 2021 · 3 years ago
  When you set a limit price for a cryptocurrency trade, it determines the maximum or minimum price at which you are willing to buy or sell the asset. If the market price reaches or exceeds your limit price, the trade will be executed. However, if the market price does not reach your limit price, the trade will not be executed. This allows you to have more control over the price at which you enter or exit a trade, but it also means that there is a possibility that your trade may not be executed if the market does not move in your favor.
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• Nov 27, 2021 · 3 years ago
  Setting a limit price in cryptocurrency trading is like setting a price threshold for your trade. It ensures that your trade will only be executed if the market price reaches or exceeds your specified limit. This can be useful if you want to buy or sell at a specific price level, but it also means that your trade may not be executed if the market does not reach your limit price. It's important to carefully consider your limit price and the current market conditions before placing a trade.
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• Nov 27, 2021 · 3 years ago
  BYDFi, a leading cryptocurrency exchange, explains that a limit price has a direct impact on trade execution. When you set a limit price, it acts as a trigger for the trade to be executed once the market price reaches or exceeds your specified limit. This allows you to have more control over your trades and potentially get a better price for your buy or sell orders. However, it's important to note that if the market price does not reach your limit price, your trade will not be executed. Therefore, it's crucial to set a realistic limit price based on the current market conditions to increase the chances of your trade being executed.
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