Limit Order

A Limit Order on Pacifica lets you specify the exact price (or better) at which you wish to buy or sell an asset. This order type gives you precise control over your entry and exit points, allowing you to manage risk and optimize trade execution.

How It Works

When you place a Limit Order, you set a specific price target. The order will only execute at that price or at a more favorable price. Pacifica supports three Time-In-Force (TIF) settings for Limit Orders:

• Good-Til-Cancelled (GTC): The order remains active on the orderbook until it is either fully filled or manually cancelled.

• Immediate-or-Cancel (IOC): The order attempts to fill immediately at your specified price (or better). Any portion of the order that cannot be filled immediately is cancelled.

• Add-Limit-Only (ALO): Also known as “Post Only,” this order is added to the orderbook only if it would not immediately match against an existing order. If it would cross the spread, the order is rejected.

Key Points

• Price Precision: A Limit Order ensures that you do not pay more or receive less than your specified price.

• Time-In-Force Options: Choose GTC to keep your order active until it’s filled, IOC to fill what you can immediately, or ALO to guarantee you remain a liquidity provider.

• Market Conditions: While Limit Orders allow you to set a favorable price, they are subject to market conditions. In volatile or thinly traded markets, your order may only be partially filled or may remain unfilled if the market never reaches your specified price.

When to Use a Limit Order

• Precise Entry/Exit: Use a Limit Order when you want to control your trade’s entry or exit price precisely.

• Risk Management: Limit Orders help manage risk by preventing orders from being filled at unexpected prices.

• Liquidity Provision: When using the ALO (Post Only) option, you contribute liquidity to the orderbook and potentially earn maker fees.