Limit Order
An order to buy or sell an asset at a specified price or better, which may rest in the order book if not immediately filled.
What is Limit Order?
Limit orders provide price control; a buy limit at $4,495 for ETH executes only at or below that, adding depth as resting orders. On Schwab, they help capture better prices than market quotes.
Used by market makers to provide liquidity, limit orders in DeFi CLOBs like dYdX support strategies without constant monitoring.
They don’t guarantee execution, risking missed opportunities if prices don’t hit the limit, as in Vanguard’s equity trading.
Related Terms
Transaction Fee
A cost paid to process and validate actions on a blockchain network, such as Ethereum, varying based on network demand and complexity.
OP Mainnet
Optimism's optimistic rollup network for Ethereum, delivering low-cost, high-speed transactions.
Open Market Operations (OMO)
The Federal Reserve's buying and selling of government securities in the open market to adjust the supply of reserves and influence interest rates.
Off-Chain
Transactions processed outside the main blockchain, settled periodically on-chain for efficiency.
Loan-to-Value Ratio (LTV)
The ratio of a loan’s value to the value of its collateral in DeFi lending.
Liquidation (Lending)
The automated sale of a borrower’s collateral when its value falls below a protocol’s required threshold.