Limit order
Also known as: buy limit, sell limit
Limit order: A limit order is an order to buy or sell at a set price or better. A buy limit is placed below the current price and a sell limit above it.
How a limit order works
A limit order waits until the market reaches your price. It is filled at that price or better, subject to available liquidity. On most retail FX platforms, a buy limit is triggered when the ask reaches the order price and a sell limit when the bid does.
When traders use it
Limit orders are used to enter at a better price than the current one — buying on a dip or selling into a rally — and to take profit at a target. The trade-off is that the order may never be filled if the price does not reach it.
Limit order vs stop order
A limit order waits for a better price than now; a stop order waits for a worse price, for example to join a breakout or to limit a loss.
Example
With EUR/USD at 1.0850, a buy limit at 1.0820 opens a long position only if the price falls to 1.0820.
Learn more
- Forex Order Types: Market, Limit, Stop and More Explained
A guide to forex order types — market, buy/sell limit, buy/sell stop, stop-limit, stop loss, take profit, trailing stop and OCO — with examples.
Related terms
- Stop order
A stop order is an order to buy once the price rises to a set level (buy stop) or to sell once it falls to a set level (sell stop). When triggered, it typically becomes a market order.
- Market order
A market order is an order to buy or sell straight away at the best available price. Buy orders fill at the ask and sell orders at the bid.
- Take profit
A take profit is an order that closes a position automatically when the price reaches a set profit target.