Limit order
An order with a price limit: buy no higher / sell no lower than the level you specify. Price control at the cost of execution risk.
Definition
A limit order is an order with a price limit: you buy no higher (or sell no lower) than the level you specify. It gives you control over price at the cost of certainty of execution — if the market never reaches your limit, the order may not be filled at all.
Example
You want to buy a stock at support of 48 PLN while the market trades at 50. You place a limit buy at 48.10. You only get a fill once an offer appears at or below your limit; if the price bounces from 49 without ever coming down, you are left without a position.
Anti-example / common mistake
Setting a limit “in a vacuum” with no plan: the market gaps through your level on news while you wait for the perfect fill and then chase it with a market order. A limit order is not a stop-loss — the two express different intentions.