Limit Order

Limit orders are instructions you give to a brokerage to take a specific action on your account if the price reaches a certain predefined level.

These type of orders come in two varieties, buy limiting orders and sell limit orders. With a buy limiting order, you would specify that you wish to trade is made at a certain limit price or lower.

In the case of a sell limiting order, you would specify that trade is made at a certain limit price or higher. These orders are a useful way to have some control over your positions while you’re away from the charts, they guarantee that a trade will only be made at your limit price or better.