LIMIT ORDER This type of orders is used when you want to open a position at a better price than the current price. What does it mean “Better Price”? It means that you want to buy cheaper (i.e. below the market) or Sell higher (i.e. above the market). For example, current USD/CHF quote is 1.0830/1.0832. You have made your own analysis and come to conclusion that market could reach the area of strong resistance around 1.0950 and then you expect that market has a nice probability reestablish a downward move from there. So, you want to enter “Short” from 1.0950. That’s fine – as I’ve said you have two ways how to do that. You can sit in front of display and wait for when the market will reach this level or you may place a Limit “Sell” order at 1.0950 and go to the beach, away from computer. If market will reach 1.0950 or higher, the software will automatically fill your “Sell” Limit order at the best available price. The limit order can’t be executed lower than 1.0950, i.e. at worse price, that was set initially. The same thing, if you want to buy, say, at 1.0700, while the current rate is 1.0830/1.0832. Then you should place “Limit Buy Order” at 1.0700 and if market will reach 1.0700 or lower the software will automatically fill your “Buy” Limit order at the best available price. The limit order can’t be executed higher than 1.0700, i.e. at worse price, that was set by you initially. Usually this type of orders is used when trader expects a turning of the market in the opposite direction at some point, because due to this order you are buying (entering Long), when market move down from the current price and you selling (entering Short), when market moves up from the current price. So it means that you expect that somewhere in an area of your order, the market should reverse in the opposite direction.