Trading & Markets
Limit Order
An order to buy or sell at a specified price or better. It rests in the book until filled or canceled, trading queue position for price certainty.
In plain English
A limit order guarantees your price but not your fill: buy limits rest below the market, sell limits above, executing only when price trades there with enough volume to reach your place in the queue.
Prop traders use limits to enter at planned levels without chasing and to exit at targets. The risk is the miss: price touches your level and reverses one tick short of filling you. In sim funded accounts fills at touched limits can be slightly friendlier than live queues would be, a known sim-versus-live difference.
- A trader rests a buy limit at 4998.25 under a sweep level.
- Price wicks to 4998.00, fills the order, and reverses; the same entry chased with a market order would have cost 2 ticks more.