A limit order is a type of order in futures trading where you wish to buy or sell an asset at a specific price. The limit order will only be executed when the market price reaches or falls below your specified price.
- Using the BTC/USDT trading pair as an example, let's say the current market price is 10 USDT, and you want to buy a contract at a price of 9 USDT. You can place a limit buy order with a buying price set at 9 USDT. The limit buy order will only be executed when the market price reaches or falls below 9 USDT, and the system will execute the trade for you at the price of 9 USDT.
- Similarly, if you want to sell a contract at a specific price, let's say you set a selling price of 11 USDT. The limit sell order will only be executed when the market price reaches or exceeds 11 USDT, and the system will execute the trade for you at the price of 11 USDT.
It is important to note that the actual execution price may have some deviations due to market volatility. When placing limit orders, it is recommended to carefully consider the market conditions and formulate appropriate limit order strategies based on your risk tolerance.