Limit Order is an order method to buy or sell at a specific price or at a better price. However, there is no guarantee that a Limit Order can always be executed.

Buy Illustration

When current price (A) goes down to Limit Order price (C) or below, order will be executed automatically. Order will be filled if the buy price is above or equal to the current price. Therefore, the buy price of the Limit Order should be below the current price.

For example:

1. The current price in the chart above is 1400 (A), if a new buy/limit order is placed at a limit price of 500 (C), the order will not be executed until the price drops to 500 (C) or lower.
2. On the other hand, if a buy/limit order is placed at a limit price of 2000 (B) which is above the current price, the order will be placed at the last price. Executed price is around 1400, not 2000.