Limit order
A limit order is an order executed only at the price you set, or better, prioritising price control over certainty of execution.
The limit order flips the market order's trade-off: you set your price, and the order only executes if the market reaches it : at the limit price or better. A buy limit is placed below the current price (buying a dip), a sell limit above it (selling into a bounce or taking profits). In exchange for this control, execution is not guaranteed: if the price never comes back to your limit, the order simply sits unfilled.
When to use it
The limit order is the tool of planned entries: you have identified a level (a support, the lower Bollinger Band, the Kijun-sen) and you let the market come to you instead of chasing price. It also serves for exits: a sell limit placed at your target acts as a take profit. In Screener.Trading's paper trading, the LIMIT order works exactly as it does at a broker: it stays pending until the simulated price reaches your limit, letting you test dip-buying entry strategies under realistic conditions without real capital.
The real cost of a limit order is the missed trade: if your limit is too greedy, the best moves leave without you. Place it at a level justified by analysis, not at an arbitrary round number.
Keep exploring
- FeaturePaper trading: learn in real conditions, without the riskPlace orders, manage positions and track your P&L on fully virtual accounts : real trading practice with zero real money at stake.
- GlossaryMarket orderA market order is an order executed immediately at the best available price, prioritising certainty of execution over price control.
- GlossaryTrigger orderA trigger order stays dormant until price reaches a defined threshold, then executes, making it the tool of choice for protective stops and breakout entries.
- GlossaryTake profitA take profit is an automatic profit-taking exit level, set before entering a position, which locks in the gain when price reaches the intended target.
- GlossaryBollinger lower bandThe lower Bollinger Band sits two standard deviations below the 20-period simple moving average and marks the lower volatility zone of price.
- GuideThe complete beginner's guide to tradingEverything you need to understand before placing your first order: reading a chart, choosing your style, using the right indicators, managing risk, and practicing without risking a cent.