🎯 Orders·beginner

Buy Limit

A pending order to buy BELOW the current price — used to enter long on a pullback to a support or value level.

A buy limit is a limit order placed below the current market price. The trader is saying "I want to buy, but only if the price comes down to my level." Buy limits are used for pullback entries — you wait for a healthy retrace within an uptrend and then buy at value, instead of chasing breakouts. The key difference from a buy stop: a buy limit fills at YOUR price or better — never worse. If you set a buy limit at 1.0900 and price trades down through 1.0900, you get filled at 1.0900 (or, if liquidity is thin, slightly better). You won't get bad slippage like you might with a market order or a stop. The trade-off is that buy limits can be missed entirely. If price never reaches your level, you never enter the trade. Patient pullback traders accept this — they'd rather miss a trade than chase one.

Real trade example

Traders long Gold during the 2024 rally placed buy limits at the daily 50 EMA on every pullback. The level was hit four times during the run from $2,000 to $2,790 — every fill led to 50-150 dollars of upside.

Related terms

Sell Limit

beginner

A pending order to sell ABOVE the current price — used to enter short on a rally to a resistance or value level.

Buy Stop

beginner

A pending order to buy ABOVE the current price — used to enter long when a breakout above resistance occurs.

Limit Order

beginner

An order to buy or sell at a specific price or better — guarantees price, not execution.

Support

beginner

A price level where buyers have historically stepped in to stop the decline and turn price back up.

OCO Order (One-Cancels-the-Other)

intermediate

Two orders linked together — when one fills, the other is automatically cancelled.

Sell Stop

beginner

A pending order to sell BELOW the current price — used to enter short when a breakdown below support occurs.

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