Limit Orders in Prediction Markets
A limit order lets you set the price you're willing to trade at. The order sits in the orderbook until someone takes the other side, or you cancel it.
How Limit Orders Work
Buy limit at 28 cents: Your order rests on the bid side. If someone sells at 28 cents or lower, your order fills. If the market never trades that low, your order remains unfilled.
Sell limit at 45 cents: Your order rests on the ask side. If someone buys at 45 cents or higher, your order fills.
Advantages
- Price control: You never pay more (or receive less) than your specified price
- Lower costs: Limit orders avoid crossing the spread, saving you the spread cost
- Patience premium: In prediction markets, patient limit orders often capture better prices than aggressive market orders
Disadvantages
- No fill guarantee: The market might never reach your price
- Opportunity cost: While waiting for a fill, the market might move away from you
- Partial fills: You might get filled on only part of your order
Using Limit Orders Strategically
On Kalshi, most sophisticated traders use limit orders exclusively. The strategy engine places limit orders based on your entry conditions:
entryBelow: 30— places a buy limit at 30 centsentryAbove: 70— places a sell limit at 70 cents
The heartbeat service monitors these and adjusts as needed.