A limit order is an instruction to buy or sell at a specified price or better. Take a buy limit order as an example:
Assume the market bid and ask prices of EURUSD are 1.02150 and 1.02160 respectively. Investors can place a limit order at a price (e.g., 1.02130) lower than the current market price of 1.02160. If the market ask price falls to 1.02130, the order will be executed.
2.1 In the hedging mode, limit orders can only be used to open positions.
2.2 On the sell side:
a. The specified price should not be lower than the best bid price.
b. The take-profit price should not be higher than the specified price.
c. The stop-loss price should not be lower than the specified price.
2.3 On the buy side:
a. The specified price should not be higher than the best ask price.
b. The take-profit price should not be lower than the specified price.
c. The stop-loss price should not be higher than the specified price.