Limit Order – A pending order to buy or sell at a specified price or better. A buy limit is placed below the current market price, and a sell limit above it. The order only executes if the market reaches the limit price (or a better price). For example, if EUR/USD is 1.2000 and you set a buy limit at 1.1980, the order will execute when price drops to 1.1980. Once triggered, it fills at the limit price (or better). Babypips defines it: “A limit order is placed to either buy below the market or sell above the market at a certain price”. Limit orders are used to enter at favorable prices.

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