What is a 'Limit Order'?
A limit order is when a trade is placed at a specific price and a precise number of an asset. This results in an exact trade and prevents any slippage from occurring during that individual trade.
You can place a limit order to buy exactly .01 BTC at the price of 6215.00. In this case, the trade will either be completed or cancelled. So, if the market moves and the price of Bitcoin has increased to 6216.00, no Bitcoin will be purchased.
How are Limit Orders used in Shrimpy?
Limit Orders are always used in Shrimpy. There is an option in the Settings to allow Market Orders, but only when the minimum trade threshold is not met for limit orders. This limit is usually .001 BTC for most exchanges. In the settings for Shrimpy, you can enable "use market orders for small trades", to allow market orders when the minimum trade limit for exchanges is not met.