What Is a Limit Order to Buy and How Can I Set It?

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🎓 What is a Limit Order? 

A limit order works like a "pending order", where you can set a specific price for the trade to be executed.  It is used to set a maximum or minimum price at which you are willing to buy or sell a security. 

There are 2 types of Limit orders: 

  • Buy 
  • Sell 

 

What is a Limit Order to Buy? 

A Limit Order to Buy is a Pending Order that you want to set up to buy a specific asset, but only if the price falls to or dips below a certain point that you've specified. 

Under certain trading conditions it may be impossible to execute these Orders at the requested price. In this case, our company has the right to execute the Order at the first available price. 

For example, if you set the limit price to 100 but the market opens at 90, the order will be executed at 90 and not 100.

 

How does a Limit Order to Buy work? 

Let's take an example. Let's say you want to enter a trade on the USA30. The current price is 39950. You believe that the price will keep going down until it hits 39850 before starting to climb back up. 

So, you place a Limit Buy Order for 39850, and as soon as the price hits this level, the trade is executed. If USA30 doesn't reach the limit price, the trade is not executed. 

 

🔍 How to set a Limit Order to Buy on CAPEX.com 

To set a Limit Order to Buy, you need to follow these steps: 

  1. Log into your CAPEX.com on WebTrader or mobile app 

  1. Select the asset you want to trade 

  1. Open a new order window 

  1. Select the Limit tab 

  1. Click the Buy button 

  1. Enter the amount you want to trade 

  1. Enter your Limit level 

  1. Click the Place Order button  

Now your Limit Buy Order is set. As soon as the asset price reaches that level, the trade will be executed.  

 

🖊️ Can I modify or cancel a Limit Order to Buy? 

Yes, you can modify or cancel your order anytime you want before it gets triggered.  

Simply go to the Orders screen and click on the edit button or swipe right on your mobile. Next, make your edits and click the 'Save Changes' button.  

To cancel a Limit Order to Buy, you just need to click the cancel button.  

 

 

Related articles 

How do I open a position? 

What is Stop Loss and how can I set it? 

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