Limit Order

A limit order tells the broker "only fill me if the market reaches THIS price or better." A buy limit sits below the current price (you want to buy cheaper than now). A sell limit sits above (you want to sell higher than now). If the market never reaches your limit, your order never fills. Limit orders are how pros enter. Instead of chasing the market with a market order, they set a limit at a level they WANT to trade from — usually a support/resistance zone, a Fibonacci retracement, or a moving average. If the market comes to them, great. If not, no trade. The trade-off is that limit orders don't guarantee execution. A big move might run without touching your level, and you miss it. That's the cost of patience — but it's also how traders get great prices.