marginal demand

When you place a limit order, you can choose the maximum buy price or the minimum sell price. The trading platform will automatically attempt to execute the limit order when the market price reaches the limit price or a better price. These orders are useful when you are targeting a specific price to enter or exit a trade and don’t mind waiting for market conditions to meet your criteria.

Traders typically place limit sell orders above the current market price and limit buy orders below the current market price. If you place a limit order at the current market price, it will likely be filled within a few seconds (unless the market is very liquid).

For example, if the market price of Bitcoin is $32,000 (BUSD), you can place a limit buy order at $31,000 to buy BTC once the price reaches $31,000 or lower. You can also place a limit sell order at $33,000, which means the exchange will sell your BTC when the price reaches $33,000 or higher.