Limit Orders

A limit order is a specific type of order to purchase a defined number of futures contracts at a designated price. Importantly, a limit order will exclusively execute at the specified price or, if available, at a better price. This level of precision offers traders complete control over both the quantity and price of their order. Limit orders are valuable for achieving precise order execution. They enable traders to determine the exact price and quantity before the order is executed. However, it's essential to note that limit orders prioritize accuracy over speed and immediacy. In fast-paced markets, there's a risk that the order may not get filled if the market price does not reach the specified level. 

Here's an example to illustrate: Suppose the current market price is $100. By using limit orders, you can place an order at $95, anticipating a potential price decline. However, this order will only execute if the market price reaches $95, ensuring you receive the desired price and quantity. It's important to acknowledge that with a limit order, there is a risk of the price not reaching your target, resulting in the order not being executed. 

For a full demonstration, visit our Limit Order walkthrough. video. https://www.youtube.com/watch?v=Ghvr3efrrp8[/embed]