Using Limit Orders in Crypto Trading
Traders are often faced with high-volatility crypto markets and the use of different order types can be crucial for their trading success. One of the key order types is a limit order, which allows traders to pre-determine a maximum price they are willing to pay or sell at for a given amount of cryptocurrency.
When you crypto limit orders on Luno or any other exchange or aggregator like CoinSwitch, you’re specifying both the amount of crypto you wish to buy or sell and the maximum price you are willing to pay or accept for that specific amount (Pic. 1). As a result, your order won’t be executed until the specified price is reached or better.
This is an extremely useful feature for traders who are not able to monitor the price movements of their preferred coins in real-time, but still want to take advantage of short-term price fluctuations. It allows them to reduce the risk of placing a market order and ensures that their orders won’t be executed at unfavourable prices.
The Best Limit Order Calculators for Traders in 2025
For example, let’s say you wish to purchase some BTC but it is currently trading at $22,887. You can use a limit order to pre-emptively buy the crypto at $22,500, or even lower, assuming you think that the price might correct further.
Another useful feature of limit orders is that you can place a stop-limit order. This allows you to protect your profits in case prices turn around and start falling, for example, you may set a sell-stop limit of $65,000. This way, if the price of your crypto falls to $65,000 or below, the system will automatically trigger a sell limit order and your crypto will only be sold at that limit or higher.
