Limit Order

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.