A limit order is an order placed to buy or sell an asset at a specific price or better. The order will only be executed at the specified price or better, otherwise, it will remain unfilled. Limit orders provide traders with control over the execution price, but there is a risk that the order may not be executed if the market does not reach the specified price. Traders may use limit orders to take advantage of specific market conditions or to minimize losses by setting a price target for exiting a position.
