What are Limit Orders and how do they work?

screenshot of the exchange's Limit Order form for buying Ethereum on the Luno app

A limit order is an order placed on the Luno Exchange to buy or sell cryptocurrency - specifying both the amount and price at which you wish to trade.

  • A buy order (or bid) will only be executed at the limit price (or lower)

  • A sell order (or ask) will only be executed at the limit price (or higher)

Buy order

If you want to buy crypto on the exchange, first make sure you’ve selected the correct trading pair at the top (eg. BTC/EUR), and then follow these steps:

  1. On the web, go to the place order ticket section to the right, and on mobile, select PLACE ORDER at the bottom

  2. Make sure that you have BUY selected, and that the Limit option is selected

  3. If you’re trading crypto/fiat pairs, enter the limit price (in our example, EUR) that you’d like to buy for - this is the maximum price that you’re willing to pay for the amount of crypto that you want to buy
    If you’re trading crypto/crypto pairs, the limit price won’t be your local currency, but rather, the limit on the crypto that you’re using to buy another type of cryptocurrency, ie. using Bitcoin to place a buy order for Ethereum

  4. In the next field, enter the amount of crypto that you’d like to buy for the limit price that you’ve entered

  5. Select your preferred Time in Force option

  6. And finally, select BUY

Note

Once you’ve placed a buy order, you’re reserving your funds, which means that you cannot use those funds elsewhere - unless you cancel the order.

Sell order

If you want to sell crypto on the exchange, first make sure you’ve selected the correct trading pair at the top (eg. BTC/EUR), and then follow these steps:

  1. On the web, go to the place order ticket section to the right, and on mobile, select PLACE ORDER at the bottom

  2. Make sure that you have SELL selected, and that the Limit option is selected

  3. If you’re trading crypto/fiat pairs, enter the limit price (in our example, EUR) that you’d like to sell for - this is the minimum price that you’re willing to accept for the amount of crypto that you want to sell. If you’re trading crypto/crypto pairs, the limit price will be the crypto that you’re using to sell, ie. using Bitcoin to place a sell order for Ethereum

  4. In the next field, enter the amount of crypto that you’d like to sell for the limit price that you’ve entered

  5. Select your preferred Time in Force option

  6. And finally, select SELL

Note

Limit orders do not necessarily execute immediately. If you place a buy order at a price below all of the pending sell orders, you’re essentially waiting for the price of cryptocurrency to decrease and for a seller to sell cryptocurrency at the price of your order before your order is filled.

On the flip side, if you place a sell order above all of the pending buy order, you’re waiting for the price of cryptocurrency to increase and for a buyer to buy crypto at the price of your order before it is filled.

Time in Force

Time in Force indicates how long an order will remain active until it expires. 

  • GTC - Good 'Til Cancelled: The order remains open until it is filled or cancelled. This is a classic limit order.

  • IOC - Immediate Or Cancel: The part of the order that cannot be filled immediately will be cancelled. Cannot be post-only.

  • FOK - Fill Or Kill: If the order cannot be filled immediately and completely it will be cancelled before any trade. Cannot be post-only.

Viewing your buy or sell order

Once you’ve placed your buy or sell order, you’re able to view the order in the Open Orders section at the bottom left in the web, or by selecting My Orders on the mobile apps.

The 'My Orders' screen on the Luno app

Cancelling your orders

If you’ve created a buy or sell order, you can cancel it anytime from the My orders screen by selecting the X icon on the web, or by selecting the order on mobile and then CANCEL ORDER.

Tip

Curious about our other order types? Great! Find out more about market orders and stop-limit orders.

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