Sell Limit

A sell limit is the bearish mirror of the buy limit. It's a limit order placed above the current market price. The trader is saying "I want to short, but only if the price rallies to my level." Sell limits are used for fading rallies in downtrends or for shorting at major resistance. Like all limit orders, sell limits fill at YOUR price or better — never worse. If price rallies to your sell limit at 1.1000 and trades through it, you get filled at 1.1000 (or higher if there's a gap up). The execution is clean and you avoid the slippage of market orders. The drawback is the same: if price never reaches your level, the trade doesn't happen. You miss moves that didn't pull back enough.