Limit Order
A limit order is an instruction sent to an order book-based exchange to purchase or sell an asset at a specified price or better. For a limit order, the price is guaranteed, but the execution of the order is not. In the context of the market, a limit order provides liquidity. In practical terms, a limit order is thus not executed instantly and only becomes a trade once a market order removes the liquidity. More specifically, buy limit orders will be executed only at the limit price or a lower price. A sell limit order will be executed only at the limit price or a higher one.