📖 Financial Lexicon Term
What is Limit Order?
A pending order to buy below the current market price or sell above the current market price.
Detailed Explanation
Limit orders assume the market will retrace to a better price before continuing its trend. A Buy Limit catches falling knives at support levels, while a Sell Limit catches rallies at resistance levels.
💡 Practical Trading Example
Price is at 1.1000. You place a Buy Limit at 1.0950, expecting a dip before a rally.