Limit Order
An order to buy or sell a security at a specific price or better — it guarantees price but not execution.
Explained Simply
A limit buy order at $50 will only execute at $50 or below. A limit sell at $50 will only execute at $50 or above. Limit orders protect against slippage but risk not being filled if the price moves away. They're essential for: (1) entering at specific support/resistance levels, (2) setting take-profit targets, (3) trading illiquid stocks where market orders would cause excessive slippage, and (4) options trading where bid-ask spreads can be wide.
How Tradewink Uses Limit Order
Limit orders are the default order type for Tradewink's entry signals. The AI calculates an optimal limit price based on the current bid-ask spread and expected short-term price action. Take-profit targets are always placed as limit orders. For options trades (where spreads are wider), the system uses aggressive limit orders (at the mid-price or slightly better) with automatic repricing if not filled within a configurable timeout.
Related Terms
See Limit Order in action
Tradewink uses limit order as part of its AI trading signal pipeline. Start getting signals that use this concept to find real opportunities.