A limit order instructs your broker to buy or sell at a specific price or better. Unlike market orders, you control the exact entry price.
Types
- Buy Limit — Buy at or below a specified price (below current)
- Sell Limit — Sell at or above a specified price (above current)
Limit vs. Market Order
| Limit Order | Market Order | |
|---|---|---|
| Price | Guaranteed | Not guaranteed |
| Execution | Not guaranteed | Guaranteed |
| Speed | May wait | Instant |
| Best for | Precise entries | Fast execution |
Example
EUR/USD trades at 1.0850:
- Set buy limit at 1.0800
- Order waits until price drops to 1.0800
- If price never reaches 1.0800 → order doesn’t fill
Key Points
- You’ll never get a worse price than specified
- Orders may partially fill or not fill at all
- Combine with GTC duration for patience
- Perfect for support/resistance entries