A limit order is an order instruction to buy or sell an asset at a specified price. Typically, each pair in exchange has its own order book. An order book contains the limited orders that other users have placed in the book.
Looking for details on how to place a limit order in CoinMetro's Exchange platform?
When a limit order is placed in the book, it will remain in the book until it is matched with another order. When a market order is placed, it will take the best available offer from the book. Using limit orders, a trader can specify the price they would like to buy or sell the asset at. Please note that there is no guarantee that other traders will match you at your price.
Keep in mind that a limited order will always fill at the best offer available. Placing a limit order to buy Bitcoin at €50,000 would instead buy all up to €50,000, and any remaining portion of the order would become a limit order.
An example would be if you believe that Bitcoin will be €10,000 one day, you could place a limit order into the book and your Bitcoin will automatically be sold the day another trader is willing to pay €10,000.
A limit order which is posted into the book adds liquidity to the book and is, therefore, a maker order. The maker fee is 0%, with up to 50% of the taker's fee paid to the maker using CoinMetro's Rebates system.
A limit order which is instantly matched with another order in the book would be a taker order, as one takes liquidity from the book. The taker fee is 0.1%, and up to 20% of that fee can be paid back in Rebates.
Read more about Maker Fees vs Taker Fees.
Example of the BTC/EUR order book on the CoinMetro Exchange
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