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Prediction Markets101

Limit order

Limit orders avoid spread cost and give you price control, but may not fill.

Prediction Markets 101 editorial team Updated April 16, 2026 1 min read

Definition

A limit order is a buy or sell order at a specific price. It fills only if the market reaches your price.

Plain-English explanation

When you post a limit order, it sits in the order book at your price. If the market moves to your price and a counter-trader crosses it, you fill. Otherwise it stays open until you cancel or the market expires.

Example

Best ask is $0.52. You post a limit buy at $0.50. You wait. If a seller lowers their ask to $0.50, you fill. If not, you don't buy.