How it works
A buy limit is generally placed below the current market and a sell limit above it. The order should execute only at the limit price or a better price, subject to the product's rules and available liquidity.
What to check
Check how the platform handles partial fills and gaps. A limit order can remain unfilled if the market touches visually but insufficient executable liquidity is available.
- Set the limit deliberately
- Check partial-fill rules
- Accept the risk of no execution
Limits and risks
Price control comes with execution risk. A limit order can miss a move entirely, which is different from a market order that prioritizes getting filled.
Primary sources
BIS 2025 Triennial Central Bank Survey↗FCA: Contracts for difference (CFDs)↗General information only. Investment products can lose value, and terms, fees and regulation can change.