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How does a limit order work and what are “maker” and “taker” orders?

A limit order is an order placed on the Luno exchange to buy or sell Bitcoin at a specific price. 


A buy order will only be executed at the limit price (or lower); 

a sell order will only be executed at the limit price (or higher).


If you place a buy order at a price below all of the pending sell orders, it will be pending. You are then waiting for the price of Bitcoin to decrease and for a seller to sell Bitcoin at the price of your order before your order is filled. Your buy order is considered a MAKER ORDER, because it didn’t fill immediately. If it is eventually filled, you will be charged a MAKER FEE.


If you place a buy order at the same price or at a price above any pending sell orders, and it is filled immediately, your buy order is considered a TAKER ORDER. If it is filled, you will be charged a TAKER FEE.


Similarly, the maker / taker fees also apply to sell orders.


Please see more information on how fees are determined on the Luno exchange.

Related articles

What are the fees for trading on the Luno exchange? 

How does the Luno Exchange work?

How does order matching work?

The exchange interface explained


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