Skip to main content
New: The Investor's Guide to Channel Revenue Tokens Download
Secondary Market Glossary Term

Limit Order

Definition

An order where you set the exact price you want to buy or sell at. Your order will only go through at that price or better.

Understanding Limit Order

A limit order is an instruction to buy or sell Channel Revenue Tokens (CRTs) at a specified price or better on the GigaStar Secondary Market. Unlike a market order, which executes immediately at the best available price, a limit order gives the Investor control over the execution price but does not guarantee that the trade will be completed.

When placing a limit buy order, the Investor specifies the maximum price they are willing to pay. The order will only execute if a seller offers CRTs at or below that price. When placing a limit sell order, the Investor specifies the minimum price they will accept. The order will only execute if a buyer bids at or above that price.

Limit orders are particularly useful in markets where liquidity may be limited or bid-ask spreads are wide. By setting a specific price, Investors can avoid the risk of paying more than intended (when buying) or receiving less than intended (when selling). This price control is the primary advantage of limit orders over market orders.

However, the tradeoff is that a limit order may not execute at all if the market price never reaches the specified level. A buy limit order set below the current ask price will sit unfilled until a seller is willing to meet that price. Similarly, a sell limit order set above the current bid price will wait until a buyer is willing to pay that amount. In a market with lower trading volume, limit orders may remain pending for extended periods.

Investors should also be aware that limit orders may be partially filled if only some of the available CRTs at the desired price match the order quantity. The specifics of how partial fills are handled depend on the GigaStar Secondary Market's trading rules.

Using limit orders effectively requires understanding current market conditions, recent trading activity, and realistic price expectations for the CRT in question.

Key Points to Remember

  • Limit Order is regulated by the SEC under Regulation Crowdfunding
  • All investments carry risk — past performance doesn't guarantee future results
  • Review all offering documents carefully before investing

Related Terms

Frequently Asked Questions

What is the GigaStar secondary market?

The GigaStar secondary market platform, called GigaStar Trading, is an SEC-registered digital Alternative Trading System (ATS) that allows eligible investors to buy and sell previously issued Channel Revenue Tokens (CRTs) with other investors after the initial offering period and any applicable restricted period, subject to securities regulations and platform rules. (e.g., Reg CF = 12-month restricted holding period). This secondary market platform enables peer-to-peer trading of existing CRTs. Note that Investment offerings are speculative, illiquid, and involve a high degree of risk, including the risk of loss of your entire investment. Securities purchased in GigaStar Market must be held 12 months before trading in the secondary market. There is no guarantee of an active or liquid secondary market and investments are subject to market risk and will fluctuate in value. Past performance is not a guarantee of future results.

How is the secondary market different from GigaStar Market?

GigaStar Market (Primary Market) is an SEC-registered Funding Portal and member of FINRA that offers securities under a Regulation Crowdfunding (Reg CF) platform. This is the primary marketplace where Channel Revenue Tokens (CRTs) are first issued and sold directly to investors to fund a Creator. GigaStar Trading (Secondary Market) is an SEC-registered broker-dealer (BD) operating a digital Alternative Trading System (ATS) for the trading of Digital Asset Securities. This is a secondary market trading venue separate from the primary market, where eligible investors may buy and sell CRTs with one another. Primary offerings raise capital for Creators. Secondary trading allows existing investors to trade CRTs, transferring ownership, subject to market availability. NOTE: Investment offerings are speculative, illiquid, and involve a high degree of risk, including the risk of loss of your entire investment. Securities purchased in GigaStar Market must be held 12 months before trading in the secondary market. There is no guarantee of an active or liquid secondary market and investments are subject to market risk and will fluctuate in value. Past performance is not a guarantee of future results.

What assets can be traded?

Eligible Channel Revenue Tokens (CRTs) that were issued in primary offerings, have satisfied applicable holding requirements (12-month holding period from initial purchase) and meet platform eligibility standards can be traded on the GigaStar Trading platform.

View all FAQs