Limit Order
A limit order is an instruction to buy or sell a security at a specific price, called the limit price. The order will execute only when the market hits this price. However, execution isn’t guaranteed, as the order joins a queue and depends on market conditions matching the limit. This gives traders price control, avoiding unfavorable fills, but risks missing the trade if the price doesn’t align. It’s a strategic tool for precision in volatile markets, balancing certainty with opportunity cost.
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