JoymistaWhat Is a Limit Order?
A limit order is a pending order filled at the price you set or better: a buy limit below the current price, a sell limit above it.
Explained
Traders use a limit order to enter when price pulls back to a level they prefer, such as a support zone for a buy. Price may never reach the level, in which case the order never fills.
Example
Example with made-up numbersPrice is 105 and you want to buy at 100, so you place a buy limit at 100. If price drops to 100, the order fills.
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Related terms
- Stop OrderA stop order is a pending order that triggers once price moves past a level you set: a…
- Market OrderA market order fills your trade at once at the best price available now, without you…
- Support and ResistanceSupport is a price zone where falls stopped before because buyers took over; resistance…
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Open in JoymistaEducational content, not investment advice.