A limit order instructs the broker to buy or sell only at a specified price or better, so it only fills once the market reaches (or improves past) that level. A buy limit sits below the current price and a sell limit sits above it, letting a trader target a specific entry rather than chasing the current price.
Unlike market orders, limit orders won't suffer negative slippage — they either fill at your price or better, or they don't fill at all, which means a fast-moving market can leave them unfilled.
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Guide
Order Types and Slippage Explained
Market, limit and stop orders trade price certainty against execution certainty — plus what slippage is, where it comes from, and what a stop-loss caps.