Limit Order
A limit order executes only at your price or better. It guarantees price, not fill.
A limit order fills only at your price or better. It guarantees the price, not the fill, and never suffers negative slippage.
A limit order is an instruction to buy at or below a specified price, or sell at or above a specified price. It guarantees the price but not the execution: the order only fills if the market reaches your level. Limit orders are used to enter at better prices or to take profit at a target, and they never suffer from negative slippage.
How It Works
- Buy limits fill at the limit price or lower; sell limits at the limit price or higher
- Stays open until filled or cancelled (or the broker's session ends)
- Sits in the order book, adding liquidity
Trading Tips
Good for entries at support/resistance and for take-profit exits
In a fast rally a sell limit can fill well above your price - a bonus, not a risk
Related Terms
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