Limit Order

A limit order flips the market order's trade-off: it guarantees your price but not your fill. A buy limit executes only at your limit price or lower; a sell limit only at your price or higher.

Resting limit orders are the passive side of the market. They add liquidity to the book, avoid paying the spread, and on some venues collect a rebate for it. The cost is opportunity: a limit that price never touches is a trade that never happens, and in momentum names the fills you do get skew toward the times you are wrong, since the order fills precisely when price moves against you.