Limit orders#

A limit order allows you to set the exact price you’re willing to buy or sell shares at, giving you more control over your trades. Instead of buying or selling at the current market price, you can place a limit order to automatically execute your trade only when the price reaches your desired level.

How Do Limit Orders Work?#

• Buying with a Limit Order: You set the maximum price you’re willing to pay for shares. Your order will only be filled if the market price drops to or below your set price.
• Selling with a Limit Order: You set the minimum price you’re willing to sell at. Your order will only execute if the market price rises to or above your set price.

Why Use Limit Orders?#

1. More Control – You decide the price at which you want to trade, rather than accepting the current market price.
2. Better Prices – Instead of buying high or selling low, you can wait for the right price to maximize your profits.
3. No Need to Watch the Market Constantly – Your order stays open until the price conditions are met, so you don’t have to monitor prices all the time.

Example Scenarios#

• Example 1 (Buying): You believe the price of an outcome (e.g., "Bitcoin will reach $100K by the end of the month") is too high at 0.75 USDC per share. You place a limit buy order at 0.65 USDC per share. If the price drops to that level, your order will automatically be filled.
• Example 2 (Selling): You own shares in an event, and they are currently worth 0.40 USDC per share. You want to sell only if the price reaches 0.50 USDC per share, so you set a limit sell order. If the market price rises to 0.50 USDC, your order will execute automatically.

Final Thoughts#

Limit orders are great for traders who want more control and better pricing on Moonopol. Whether you’re buying or selling, using limit orders ensures you only trade at the prices that work best for you!