Limit orders are used for buying or selling bitcoin at specified price points or better.
A Buy Limit order only gets executed when the Market Price reaches the specified limit price or falls below that, where a Sell Limit order only gets executed when the Market Price reaches the specified limit price level or goes above that.
Thanks to this stipulation, traders have greater control over the price levels they trade at. When they use Buy Limit orders, they are guaranteed to pay only the specified price or a price below that.
Although the trade price is guaranteed, there’s no certainty when or if the order will get filled. Limit orders don’t get executed unless the Market Price meets the stipulated order qualifications. In case bitcoin doesn’t hit the stipulated price, the orders won’t get filled, which may cause the user to miss a favourable trading opportunity. This specific risk can be mitigated by placing a Market Order.