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In this article, we will explain what the Buy Limit order is.
When trading in the financial markets, there are basically two ways to open a trade – immediate execution and pending order. With a pending order, your trade is opened as soon as the market reaches the level you have selected.
The buy limit is placed below the current market price.
A buy limit allows you to set a buy order below the current market price and is most often placed when you expect a bounce from a certain price level. This means that if the current market price is $20 and the buy limit price is $18, then as soon as the market reaches the $18 price level, a buy position is opened.
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