What is Limit Order and How to Place Them

What is a limit order?

A limit order is an order that you submit to the order book with a designated limit price. This type of order will solely execute when the market price reaches or surpasses your specified limit price. Limit orders are advantageous for buying an asset at a lower price or selling it at a higher price compared to the prevailing market price.

On the Hata Exchange, the limit order function enables our users to specify the maximum price they are willing to pay for a cryptocurrency when buying or the minimum price they are willing to accept when selling. Unlike market orders, limit orders provide greater control over the execution price but may not be filled immediately if the market price does not meet the specified limit. This function is beneficial for traders who prioritize price over speed and want to ensure they buy or sell at their desired price levels. By using limit orders, Hata users can strategically manage their trades, optimizing for better pricing in volatile markets. 

Limit order examples

Buy Order

When you set a buy order with a limit price (C) below the current price (A), the order will be triggered and executed if the current price (A) drops to meet or fall below the specified limit price (C). Conversely, if users place a buy order with a limit price (B) equal to or higher than the current price (A), the order will be immediately filled at a price close to the current market price.

For instance, if the current price is 2,400 (A), and you place a buy limit order with a limit price of 1,500 (C), the order will only execute once the price drops to 1,500 (C) or goes below it. On the other hand, if you place a buy limit order with a limit price of 3,000 (B), which is higher than the current price, the order will be filled instantly at a price around 2,400, not at 3,000.

Sell Order

If you set a sell order with a limit price (B) above the current price (A), the order will be executed when the current price (A) reaches or exceeds the specified limit price (B). On the other hand, if you place a sell order with a limit price (C) equal to or below the current price (A), the order will be promptly filled at a price close to the current market price.

For instance, if the current price is 2,400 (A) and you place a sell limit order with a limit price of 3,000 (B), the order will not be executed until the price reaches 3,000 (B) or goes above it. Conversely, if you place a sell limit order with a limit price of 1,500 (C), which is lower than the current price, the order will be immediately filled at a price around 2,400, not at 1,500.

How to place a buy limit order?

To start, visit the Hata Exchange and ensure that you have selected [Limit].

• Enter the price you want to buy in the [Price] column. For example, you want to buy BTC at 318,334 MYR. 
• Next, enter the amount of BTC to buy directly in the [Amount] column.
• On the other hand, you may also choose to specify the amount of fiat currency you would like to use to purchase your desired cryptocurrency by inputting it in the [Total] column.

Alternatively, you may also drag the slider bar to adjust the amount of cryptocurrency you would like to purchase. The percentage is based off the amount of fiat that you have left in your Spot Wallet balance. For example, you own 1,000 MYR and you want to use 100% of it to buy BTC. Drag the bar to 100% and the system will automatically calculate the amount of BTC you can get with the limit order.

• Click [Buy BTC] to place the limit buy order. Once the market price reaches your limit price (or better), your limit order will be executed.

How to place a sell limit order?

To start, visit the Hata Exchange and ensure that you have selected [Limit]. 

• Enter the price you want to sell your cryptocurrency for in the [Price] column. For example, you want to sell BTC at 318,334 MYR. 
• Next, enter the amount of BTC to sell directly in the [Amount] column.
• On the other hand, you may also choose to specify the amount of fiat currency you would like to acquire by selling off your cryptocurrency by inputting it in the [Total] column.

Alternatively, you may also drag the slider bar to adjust the amount of cryptocurrency you would like to purchase. The percentage is based off the amount of fiat that you have left in your Spot Wallet balance. For example, you own 1,000 MYR and you want to use 100% of it to buy BTC. Drag the bar to 100% and the system will automatically calculate the amount of USD you can get with the limit order.

• Click [Sell BTC] to place the sell limit order. Once the market price reaches your limit price (or better), your limit order will be executed.

For a step-by-step tutorial on how to place buy and sell limit orders on the Hata App, please refer to the How to Spot Trade on Hata App article.

How to view my order history?

If you are using the Hata Website: