Buy Limit Order Meaning Explained and Examples

A buy limit order is an order to buy indices at a better price after price has retraced from its current area.

A buy limit order is an order to buy at a lower price than the current price

A buy limit is only executed when the prices falls & retraces to the set buy limit area.

What is Buy Limit Order Example?

Buy Limit Order definition - Entry limit is an order to buy a Indices at a certain stock price which is a retracement level where price is predicted to pull-back to before resuming the original Indices trend.

Traders use buy limit orders to buy at better market price. These types of buy limit orders are available in most of platforms, for our example we will be using MT4 stock platform.

An entry buy limit pending order of this type can be used to buy below trading market level (retracement in an up indices trend market).

Buy limit - When buying, your entry buy limit is executed when stock trading market falls to your set price. (retraces down)

Entry orders are placed by traders when they expect price to bounce back after reaching this area.

• Entry Buy Limit Orderbuy at a level below the current market level.

What is Buy Limit Order Example?

In the trading examples explained below, the buy limit order was placed to buy at a price below the current market price. Point B is point at which it was set.

Buy Limit Order Placed to Buy Below the Current Market Price - What's Buy Limit Order?

The price then retraced and went down to hit buy entry limit, and afterwards price continued to move upward in direction of the original Indices upward trend. When the limit buy order was hit it changed into a buy order.

Buy Limit Orders Now Changes to a Buy Order - Buy Limit Order