A limit order is an agreement to swap tokens at a specific price you set.
Unlike a traditional swap, which swaps immediately at the current market price, a limit order waits until a filler can match your specified price before the swap occurs.
When creating a limit order you choose:
- Which tokens you want to sell and buy
- The amount of tokens you want to sell and buy
- The price at which you want the swap to occur
- The time frame your limit will be active for (also known as the “expiry”)
Once you've created your limit order it's sent into a pool of open orders accessible by an open network of third party fillers using UniswapX.