Markets & trading
A limit order sets the worst price the trader will accept: no more than the limit when buying and no less when selling. Price control is gained by accepting execution uncertainty.
Make it click
A buyer leaves an offer saying the most they will pay. The offer can be accepted, partly accepted or ignored; the boundary prevents a dearer purchase but cannot summon a seller.
Now put that into markets
A non-marketable limit joins or sits behind other orders, while a marketable limit can execute immediately up to its boundary. Queue priority and venue rules matter.
Orders can fill in parts and may expire under day or longer-duration instructions. A displayed touch at the limit does not prove the order was first in the queue.
Check limit, side, duration, fill quantity and any remaining order. Compare the trade-off between missed execution and price protection.
A limit can remain unfilled while the market moves away, and an eventual fill does not mean the subsequent price will be favourable.
Takeaway
