FOREX.com by StoneX logo

Limits/limit order definition

Limits/limit order

An order that seeks to buy at lower levels than the current market or sell at higher levels than the current market.

A limit order sets restriction on the maximum price to be paid or the minimum price to be received.

As an example, if the current price of USD/JPY is 117.00/05, then a limit order to buy USD would be at a price below the current market, e.g. 116.50.

A Limit Order that is attached to a currently existing open position (or a pending entry order) with the purpose of closing that position may also be referred to as a “Take Profit” order.

Search the Glossary

Look up the meaning of hundreds of trading terms in our comprehensive glossary.

It's your world. Trade it.