Order types · Glossary
Limit order
An order to buy or sell at a specified price or better.
Definition and explanation
A limit order specifies a price and waits for the market to reach it. A buy limit sits at or below the current price; a sell limit sits at or above it. Limit orders can improve execution price but are not guaranteed to fill, particularly during fast or gappy moves.
Example
A trader can place a buy limit below the current price to enter only if the market trades down to that level.
Educational information only. Trading terms and contract mechanics can vary by venue and market. Verify the rules of the provider you use.