A Limit Order is a buy or sell order where you “set the limit” by specifying the price that you are willing to buy or sell an asset for. You may use limit orders to buy at a lower price or sell at a higher price than the current market price.
Unlike a market order which is executed instantly, a limit order is triggered only when the price you specified is reached.
If you prefer to buy an asset for a price that is lower than the current market price, you will place a Limit Buy Order. However, if you want to sell an asset that you have for a price that’s higher than the current market price, you will use a Limit Sell Order.