Limit Orders Work (Binance)

[Nonstopspider]

Hello Guys I have a serious issue with Binance Support and the Devs team of the Spot trading system. Maybe I am wrong but I want to know.

A limit order (sell) means to be executed if the price touches the order price not above prices, I am correct? Example:

If the market price is 3.74 and I set a sell order on 3.56, the price should be executed on 3.56 (if the volatility and amount of orders on that price makes it possible), not on the MARKET PRICE because the system found a better price and decided to sell.


PD: This issue didn't happen in all the trades spot or futures

(This Text will be modified as the answers arrive to put further info of my case)

Thank you for the replies. i really want to give you a you are right but Binance doesn't let me check the order. Honestly I cannot remember exactly at this moment if a put a SL or a Limit Order Sell

[Oshosondy]

A limit order (sell) means to be executed if the price touches the order price not above prices, I am correct? Example:

Yes. Just take an example like this, if you want to sell something and you put a low price on it, this will encourage people to buy what you want to sell. In a limit sell order, the order will be filled when the mark price get to the limit order you set, or a price below. If the price is below before, the order would be filled immediately at the market price, just like using a market order.

[Wapfika]

You’re correct on your understanding about limit order. Do you have screenshot of your trading history to verify what’s really happened.

I’m thinking 2 possible scenario on what happened incase this is not a bug:
1.) You use market order instead of limit order. Your just confused on the exchange UI that you are using limit order.
2.) You set a limit a price that below the current sell price which equivalent to market order.

Sharing your screenshot will help us fully understand your situation.

[Oshosondy]

2.) You set a limit a price that below the current sell price which equivalent to market order.

I think he just want to understand what limit order is, but if I am wrong and it is like he lost money while he used limit order, probably he went for a low marketcap coin or a coin that has very low trading volume, but I am still doubting if Binance list low trading volume coins. These are the coins that their order are filled with a price that will not favour a trader but to lose some amount of money and the reasons that can cause it is when market order is used for the coin or the reason you mentioned that I quote.

[dbshck]

A limit order (sell) means to be executed if the price touches the order price not above prices, I am correct? Example:

If the market price is 3.74 and I set a sell order on 3.56, the price should be executed on 3.56 (if the volatility and amount of orders on that price makes it possible), not on the MARKET PRICE because the system found a better price and decided to sell.

No, that's not accurate. If you place a limit sell order at 3.56 while the current market price is at 3.74, the order will be executed immediately at the current market price (3.74).

What you're describing is a stop-limit order, which means that the system will only place the limit sell order once the market price reaches 3.56.

[noorman0]

Your sell order will:
- executed at the limit price (3.56) if you place the order before the price reaches 3.74
- executed at the market price (more than 3.56) if you place an order when the highest buy price on the order book has exceeded the limit price you set
- not executed (become an order queue) if you place an order when the market price has shown 3.74 but the highest buy order at that time is just below 3.65 (because of low liquidity)

[Nonstopspider]

2.) You set a limit a price that below the current sell price which equivalent to market order.

I think he just want to understand what limit order is, but if I am wrong and it is like he lost money while he used limit order, probably he went for a low marketcap coin or a coin that has very low trading volume, but I am still doubting if Binance list low trading volume coins. These are the coins that their order are filled with a price that will not favour a trader but to lose some amount of money and the reasons that can cause it is when market order is used for the coin or the reason you mentioned that I quote.

The token in question was Aptos

[Bitcoin_Arena]

I think you are mixing something up. You can't set a sell limit order (ask) lower than the market price, or else it gets executed at market price immediately on the spot market. Some exchanges like bybit do have a "Post only" option on derivatives markets. Once active. If you try to open a short position below the market price, it gets cancelled immediately so that you try again. (it always has to be above the market price)

All the above members gave you right answers. Please read them carefully and then read further to understand how orders work in exchanges.

[tvplus006]

...If the market price is 3.74 and I set a sell order on 3.56, the price should be executed on 3.56 (if the volatility and amount of orders on that price makes it possible), not on the MARKET PRICE because the system found a better price and decided to sell...

Your order will be executed at the market price, since you have set a price that is lower than the current coin price. In order for your order to be implemented at the price of 3.56, you need to use a stop loss. In this case, when the price drops to the level of your order, it will be automatically executed.

[Nonstopspider]

I think you are mixing something up. You can't set a sell limit order (ask) lower than the market price, or else it gets executed at market price immediately on the spot market. Some exchanges like bybit do have a "Post only" option on derivatives markets. Once active. If you try to open a short position below the market price, it gets cancelled immediately so that you try again. (it always has to be above the market price)

All the above members gave you right answers. Please read them carefully and then read further to understand how orders work in exchanges.

Thanks for the reply. Honestly at this moment I don't remember if I put a SL or Limit order but Binance doesn't let me check that