Market range is a concept used with Market or Stop Orders, not Limit Orders. Limit orders are only filled at the specified price or better. Unlike Market Orders or Stop Orders, limit orders do not require a market range to be set. If the rate you have chosen for execution is not available, the order will not be filled.
However, the market range (or slippage tolerance) applies to Market Orders and Stop Orders. It defines how far the market price can move away from your requested price while still allowing the trade to execute.
For Market Orders and Stop Orders, if the price moves within the market range, the trade is filled. If the price moves outside the range, you will receive a requote or the order may be rejected.
When you choose a specific rate for execution, it might not be available, but the market range improves fill likelihood.
The market range has several benefits:
• Ensures your order is filled at a rate close to your chosen level.
• Acts as a safety measure, preventing trades from opening if the price sharply diverges from your target.
The market range extends from your target rate in the market's direction:
• If your target rate is higher than the current market rate, the range extends upward.
• If your target rate is lower, the range extends downward.