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Home/Glossary/Limit order

Orders and execution · Rookie

Limit order

By Omer Rapaport · Content updated 11 September 2026

What does Limit order mean?

A limit order permits execution only at its stated price or better. It controls the worst acceptable execution price but may remain unfilled.

Example

A buy limit at $25 cannot fill above $25 under normal limit-order semantics.

Illustrative example; not a provider’s quoted offer.

Why it matters for prop traders

A price touching the level does not always mean enough liquidity was available to fill the order.

Sources and further reading

The following primary sources support the terminology. Provider rules describe their own products and may change.

  • Investor.gov - Order types

Related terms

  • Market order
  • Stop-loss order
  • Ask price
← All 181 terms

Frequently asked questions

Does a price touching my limit guarantee execution?

A price touching the level does not always mean enough liquidity was available to fill the order.

Sources: Investor.gov - Order types

What is a practical example of Limit order?

Illustrative example: A buy limit at $25 cannot fill above $25 under normal limit-order semantics.

Sources: Investor.gov - Order types

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