Instead of trading at the current price, you can place a limit order at a price you choose. It rests until the market reaches your price, then fills.
How they work
- Limit buy: fills at or below your chosen price.
- Limit sell: fills at or above your chosen price.
- Capital for a resting order is reserved from your balance until it fills or you cancel.
Limit orders are good-til-cancelled. You can cancel an unfilled order at any time to free the reserved funds.