Limit Order
A Limit Order allows users to set the order quantity and the maximum price they are willing to pay when buying or the minimum price they are willing to accept when selling. When the market price reaches the user’s specified level, the system will execute the order at the best available price within the limit range. (As shown in the example image.)
Whether a limit order becomes a maker order (adds liquidity) or a taker order (removes liquidity) depends on the price you set, the order size, and current market conditions.
The Post Only option is only available for Limit Orders because of how orders interact with the market’s order book. A Limit Order allows you to set a specific price. When you enable Post Only, your order will only be placed on the order book and not execute immediately. This means your order provides liquidity to the market, making you a maker.
Example:
The current BTC market price is 53,000 USDT. If you want to buy at a lower price of 52,900 USDT, you can place a limit order and set the buy price to 52,900 USDT. After placing the order, it will automatically execute when the market price drops to 52,900 USDT or lower.
Market Order
A Market Order allows users to buy or sell immediately at the best available market price, enabling faster order execution.
Example:
Assume the latest BTC traded price is 53,000 USDT. If a user wants to buy BTC immediately, they can choose a market order and enter the order amount, such as 40 USDT. After placing the order, it will be executed instantly.
In a fast-moving market, the execution price may not be exactly 53,000 USDT. Instead, it will be filled at the current real-time market price, which could be higher or lower than 53,000 USDT. Additionally, market orders usually have higher fees than limit orders.
Key Differences
Limit Order: Requires manually entering the expected execution price.
Market Order: No price input is required; the order executes immediately at the current market price.