A limit order is an instruction to buy or sell an asset at a specific price or better.
Unlike a market order, which executes immediately regardless of price, a limit order only executes when the market reaches your specified price or offers a better price.
This gives you more control over the price at which you enter or exit a position, but there’s no guarantee that the order will be filled. Limit orders are useful when you’re willing to wait for a favorable price and are more concerned about the price you get than the speed of execution.
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