Limit Order

How to create a buy or sale Limit Order in Coinbase Pro

Limit Orders

  • Limit Orders are easier to explain than Stop Orders.

Buying or Selling Limit Orders

  • It works much the same way for buying or selling.
  • However we should cover them separately.

Creating a Buy Limit Order

  • After verifying that you selected the correct Market,
    • for this discussion, I’ll be using BTC-USD for Bitcoins and US Dollars.
  • Select the Buy button
  • Select the Limit tab
    • Note that the Amount box has changed because before it was set on the Market tab.
    • In the Market tab, Amount is used to quote the dollar amount
      • you are willing to pay, for a portion of Bitcoins.
    • In the Limit tab, the Max link is gone, and USD is replaced with BTC
    • Now the Amount box wants you to enter the 8 decimal place portion
      • of the amount of Bitcoins you want to buy.

Limit Price

  • The Limit Price should be the amount or portion of an 8 decimal digit
    • that represents the portion of bitcoin you want to buy.
  • If the value of bitcoins were sinking,
    • you may want to buy when the value reaches a certain point.
  • For this example, pretend one bitcoin was worth $65,000.00,
    • it was recently valued at 67,000 and the price is still falling.
  • You may want to buy when the price of bitcoins equals $63,000.00
  • We enter that amount into the Limit Price field.
  • After entering the limit amount in the Limit Price box,
  • The Fee and Total fields display the results of your entry.
  • The Fee is calculated and displayed.
  • The Total represents how much in US Dollars this trade will cost you.

Place Buy Order

  • Unlike a Market Order that will process immediately,
    • a Limit Order may take some time to process
    • because the order has to wait for the stock price to go down
    • and reach the price that you placed in the Limit Price box.

After clicking the “Place Buy Order” button

  • The Amount and Limit Price boxes are set to zeros.
  • The Place Buy Order button is briefly replaced with the word “Success”
  • The Order is placed into the “Open Orders” panel if displayed.
  • Under the Status header in the “Open Orders” panel
    • to the right of the word “Open” there is an x displayed.
    • That’s in case you want to cancel this order from the Trade screen
    • All you would need to do to cancel this order is to click that “x”.

Canceling the Limit Order

  • There are two places where you can cancel this order.
  • On the Trade screen
  • under the Status header in the “Open Orders” panel
    • to the right of the word “Open” there is an x displayed.
    • That’s in case you want to cancel this order from the Trade screen
    • All you would need to do to cancel this order is to click that “x”.
  • On the Order screen, in the Open tab
  • under the Status header in the “Open Orders” panel
    • to the right of the word “Open” there is an x displayed.
    • That’s in case you want to cancel this order from the Trade screen
    • All you would need to do to cancel this order is to click that “x”.

After the Limit Order goes Through

  • What was previously in the Filled (BTC) column
    • from the Open Orders panel on the Trade screen,
    • is now added to your position in your portfolio.
  • You can look at previously filled orders from the Orders button on top of the screen.

Explaining a Sell Limit Order

  • Explanation goes here.