Buy Limit Order

Definition - What does Buy Limit Order mean?

A buy limit order is a forex trading order that opens a new long position or adds to an existing long position when a preset price level is breached. A buy limit order is set in advance of price action - that is, above the current buy quote for a currency pair - so that a trader can ensure a trade will take place without actively watching the chart and manually entering the order. A trader can set multiple buy limit orders to add to a position as the price action rises.

ForexDictionary explains Buy Limit Order

A buy limit order is an essential tool for automation certain trading strategies. If a buy limit order is combined with a take profit order and a stop-loss order, it creates a trade that will close out without the trader’s active involvement.
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