Exchange Order Types Explained
A trade order sets the conditions under which you buy or sell. Understand market, limit and stop-limit orders, then follow a worked example showing what fills now and what remains open.
Market order
Seeks immediate execution against available orders. The final price is not fixed and may span several price levels. Exchange protections or insufficient liquidity can prevent a complete fill.
Limit order
Sets a maximum buying price or minimum selling price. It controls the execution price, but does not guarantee that any or all of the order will fill.
Stop-limit order
Creates a limit order when a trigger condition is met. Triggering and filling are separate events; it is not a guaranteed exit or a guaranteed way to lock in profit.
Buy limit and sell limit work in opposite directions
| Instruction | Allowed execution |
|---|---|
| Buy limit at $1.02 | $1.02 or lower |
| Sell limit at $1.02 | $1.02 or higher |
A buy limit above the best ask can fill immediately against available sellers. A sell limit below the best bid can do the same against buyers. A limit order is therefore not automatically a maker order. Fees depend on whether each fill adds or removes liquidity.
Worked example: 100 tokens, $1.02 buy limit
| Available asks | Tokens filled | Cost |
|---|---|---|
| 30 at $1.00 | 30 | $30.00 |
| 40 at $1.02 | 40 | $40.80 |
| 30 at $1.05 | 0 | $0.00 |
Result: 70 tokens fill for $70.80 before fees. The remaining 30 tokens do not buy at $1.05 because that exceeds your limit. With a normal good-till-cancelled order, they can remain open at $1.02, subject to the exchange’s rules.
If the full 100 tokens eventually fill, the trade cost cannot exceed $102 before fees. The unfilled amount may reserve funds while open. Cancelling releases the remaining commitment; it does not undo the 70 tokens already bought.
Compare this with the market-order calculation: the same snapshot costs $102.30 for an immediate 100-token fill. One instruction prioritizes price; the other seeks execution.
Before placing a limit order
- Confirm the pair, account and direction: buying and selling reverse which asset you receive.
- Enter the price per token and token quantity. Check the total in the quote currency, minimum size and available balance.
- Review fees, time in force and any post-only setting.
- After submission, check the order status and individual fills. A price touching your limit does not guarantee a fill; other orders may be ahead of yours.
- Monitor or cancel the unfilled remainder if your intentions change.
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How long can it stay open?
Good till cancelled (GTC) remains active until filled or cancelled, subject to venue rules. Immediate or cancel (IOC) takes any immediately available fill and cancels the remainder. Check which options your exchange supports.
What does post-only mean?
It prevents immediate taker execution. An order that would cross the book is usually rejected or cancelled, depending on the venue. It does not guarantee a later fill or a particular fee rate.
A stop can trigger without completing a sale
Suppose a fictional sell stop-limit uses a $0.95 trigger and a $0.94 limit. Once triggered, the sale must execute at $0.94 or higher. If available bids have already fallen to $0.90, the order may remain unfilled while the price keeps falling.
Check whether the venue triggers on the last trade, mark price or another reference. A stop-market order has different execution rules and can suffer slippage. Neither is a promise of a maximum loss.
Sources and further reading
Reviewed 24 October 2026. Examples are hypothetical and exclude fees unless stated. Platform features and supported networks can change.
