A limit order is an order to buy or sell an asset at a specific price or better.
- A buy limit order can only be executed at a limited price or lower.
- A sell limit order can only be executed at a limited price or higher.
Let's say you want to buy ETH, which is now $4,000, but you think that the price of this coin will drop very soon and you might be able to buy ETH cheaper. You place a limit order on the bitoftrade exchange to buy ETH for $3,000. If the value of ETH falls to the desired price, your trading limit order will be filled.
Limit orders are also widely used to prevent losses and to close targeted profits.
Learn How to Place A Limit Order on bitoftrade [Here](https://youtu.be/BHMrLJsF9gQ).