Limit order

A limit order is filled at a set price or better: a buy below the current price, a sell above it. It guarantees the price, not the fill.

With a limit order you are saying: “I'll buy, but only at 1.0800 or lower.” It is used to enter on a pullback to support, or to sell into a bounce towards resistance.

Its advantage: no negative slippage. Its drawback: if price stops at 1.0801 and turns, you will never be filled and you will miss the move.

A take profit is technically a limit order attached to your position. On MetaTrader, the buy version is called Buy Limit and the sell version Sell Limit. Don't confuse them with stop orders, which are filled in the direction of the move.

The full lessonOrder types: market, limit, stop, OCO and trailing stopMarket, limit, stop, stop-limit, OCO, trailing stop, take profit and stop loss orders: how each trading order type works and when you should use each one.