Limit order
A limit order buys or sells only at your price or better, and may not fill. Definition, example and when to use one instead of a market order.
Definition
An order to buy or sell only at a price you set or better; it waits in the order book and may never fill if the market does not reach your price.
A limit order sets the worst price you will accept. A buy limit at $85,000 will only buy at $85,000 or lower; a sell limit at $90,000 will only sell at $90,000 or higher. Until the market reaches that price, the order waits.
Example
ETH trades at $3,050 and you place a buy limit at $3,000. If ETH dips to $3,000, your order fills. If it turns and rises instead, the order sits unfilled and you never buy.
Why it matters
A limit order controls price and gives up certainty. That makes it useful when price matters most, and risky when getting out matters most: a stop-limit order, which becomes a limit order when triggered, can be skipped entirely in a fast fall.
How TradeCorgi uses it
Agents exit at market so a stop always gets you out. Limit orders are part of how a stop-limit works, and you can read the trade-offs in stop loss vs stop limit.
A common mistake
Using a limit order to protect a position in a fast market. If the price falls straight through your limit, nothing sells. Limit orders suit entries where you can wait; for exits you must make, a market order is usually safer.