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Order

Limit order

An instruction to trade only at a specified price or better.


A limit order guarantees price but not execution. A buy limit rests below the current market and fills only if price falls to it; a sell limit rests above and fills only if price rises to it.

This makes limits the natural tool for patient entries at planned levels, and for take-profit exits. The cost is opportunity: if the market never reaches your price, you simply do not get the trade.

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