Limit Order
A limit order executes only at your chosen price or better.
Why this matters
It gives price control, but your order may not execute if the market never reaches your limit.
Simple example
A stock trades at $50. You set a buy limit at $48, and it executes only if price falls to $48 or lower.
Common mistakes
- Setting unrealistic limits that never fill.
- Forgetting that partial fills can happen.
- Using limits without understanding order duration settings.