Buy Limit
A limit order to buy at or below a specified price — placed below the current market to enter on a pullback.
A buy limit order rests in the book at or below the current ask. It will only execute if the market falls to your limit price. This is the standard order for entering a long position on a dip without chasing price.
Because it rests in the book, a buy limit adds liquidity and may qualify for a maker rebate. The risk is that price never pulls back and the opportunity is missed entirely.
Example
XYZ trades at $50.00. You set a buy limit at $48.50 near a support level. If price pulls back to $48.50, you fill there; if it keeps climbing, the order is never triggered.
Related Terms
Buy Stop
A stop order placed above the current price that triggers a market buy when price rises to the stop level — used to enter breakouts.
BeginnerLimit Order
An order to buy or sell only at a specified price or better. Guarantees price but not execution.
BeginnerMaker
A trader whose limit order rests in the order book, adding liquidity and typically earning a fee rebate on maker-taker exchanges.
IntermediateMarketable Limit Order
A limit order priced at or through the current best opposite quote — it acts like a market order but protects against extreme fills.
IntermediateSell Limit
A limit order to sell at or above a specified price — placed above the current market to exit on strength or short into resistance.
Beginner