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
Limit Order Example
Say EUR/USD trades 1.0850 and you will only buy at 1.0800. You rest a buy limit there and walk away. Price dips to touch it Thursday, fills you exactly, then rallies 80 pips. Precision entry, zero screen time.
How Traders Use Limit Order
Place limits at researched levels and accept unfilled orders as part of the method. A limit that never fills cost nothing. A chased entry costs edge. Stack them at support, resistance and measured targets.
Related Terms
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