Limit Order

A limit order is a type of order that only executes at a specified price or better. It helps traders avoid overpaying for a stock or selling too low compared to the current market price.

Types of Limit Orders:

• Buy Limit Order → Executes only if the asset’s price falls to your set price or lower.
• Sell Limit Order → Executes only if the asset’s price rises to your set price or higher.

Pros & Cons of Limit Orders:

- More control over trade execution
- Avoids buying at inflated prices or selling too cheaply
- No guarantee the trade will execute if the price never reaches the limit

Limit orders are ideal for precision traders who prioritize getting a specific price over immediate execution. See also: Market Order and Stop Order