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LMT
(Limit Order)
A LMT (Limit Order) specifies the maximum price to pay when buying or minimum to accept when selling, unlike MKT orders that execute at current prices. For example, "Buy XYZ @ $50 LMT" won't execute above $50.
Limit orders provide price control but may not fill if the market doesn't reach the specified price. They're essential for disciplined trading strategies and managing SL and TP levels. About 30% of retail orders are limit orders. While they prevent bad fills, traders risk missing moves if prices gap past their limits. Partial fills are common with large limit orders in thin markets.
Limit orders provide price control but may not fill if the market doesn't reach the specified price. They're essential for disciplined trading strategies and managing SL and TP levels. About 30% of retail orders are limit orders. While they prevent bad fills, traders risk missing moves if prices gap past their limits. Partial fills are common with large limit orders in thin markets.