A Limit Order is a conditional order that allows the trade to proceed if the rate hits your chosen limit, which may be above or below the current market rate. Specify how long you want the order to be active – or set it to be active until it is filled or manually cancelled.
Limit orders can either be Take Profit or Stop Loss, depending on whether you sell or buy and where you set the limit in relation to the current market rate.
- Take Profit (TP): when the set limit is in a favourable direction from the current market rate. For example, if you want to buy and believe the price will drop to a certain level.
- Stop Loss (SL): when the set limit is worse than the current market rate. For example, if you need to buy and will secure the price to not exceed the specified limit, to avoid paying more than you can afford.