What is Limit Order?
A limit order sets the worst price you accept. Buy limits fill at or below your price; sell limits fill at or above.
Formula
Buy Limit Order at ₹98: - If current price is ₹100, order waits - When price drops to ₹98, order fills - You get ₹98 or better (possibly ₹97.50) Sell Limit Order at ₹105: - If current price is ₹100, order waits - When price rises to ₹105, order fills - You get ₹105 or better (possibly ₹105.50) If price never reaches your limit = no fill
Indian market context (NSE)
Reference levels: Nifty 50 at 24,300, Reliance Industries at ₹1,300, Bank Nifty futures at 55,000 (lot size 30). Examples below show how Limit Order shows up on Indian index, equity, and futures books — update to live quotes in your journal.
Nifty 50 perspective
Limit Order on Nifty futures at 24,300: verify freeze quantity and tick size on NSE; market orders in opening auction behave differently from continuous session.
Reliance Industries perspective
Limit Order on Reliance (₹1,300): AMO and GTT rules vary by broker; intraday MIS auto-square-off at 15:15 IST overrides resting limit order unless converted.
Bank Nifty futures perspective
Limit Order on Bank Nifty (55,000): bracket/OCO availability depends on broker stack — test fill quality on 100-point stop triggers before live size.
How to validate
- Validate Limit Order fills against broker contract notes monthly.
- Measure median slippage in points/₹ for Limit Order on Bank Nifty vs mid-caps.
- Flag sessions with abnormal rejections or partial fills for separate review.
- Compare limit vs market tags only on symbols with similar liquidity.
How to track in TradeLyser
- Record order type, limit price, fill price, and latency on the trade.
- Tag “slippage > plan” when Limit Order fills worse than expected.
- Monthly slippage report by symbol and order type in analytics.
- Reconcile with broker order log quarterly.
Best practices
- Choose Limit Order before the move, not after FOMO entry.
- Default to limits on illiquid mid-caps; markets on urgent exits only.
- Log rejected orders — they reveal unrealistic limit discipline.
- Review slippage in R-multiples, not only rupees.
Common pitfalls
- Chasing with market orders after Limit Order already moved.
- Using limits on fast Bank Nifty breaks without timeout rules.
- Not recording partial fills — skews performance stats.
- Assuming broker fills match intended Limit Order every time.
How to use this in TradeLyser
Record limit price vs fill price. Review partial fill rate on large quantities in mid-cap stocks.
Related terms
A market order matches the best available liquidity now. You accept slippage in exchange for certainty of fill.
Slippage is the difference between the price you intended and the price you received. It rises in fast markets and thin books.
A stop loss is a pre-defined exit when the market moves against you by a set amount. It caps loss per trade when fills match your plan.
By trader level
Start here — essential concepts
New to trading or journaling? These are the core terms you need to understand before anything else.
FAQ
What is the difference between limit order and market order?
Limit orders execute only at your specified price or better—you control the price but might not get filled. Market orders execute immediately at current prices—you're guaranteed a fill but don't control the price.
What does limit price mean?
Limit price is the maximum you'll pay when buying or minimum you'll accept when selling. A buy limit at ₹100 means you'll only buy at ₹100 or less. A sell limit at ₹100 means you'll only sell at ₹100 or more.
What happens if a limit order is not filled?
Unfilled limit orders either expire (based on your order duration setting) or remain active until you cancel them. If price never reaches your limit, you miss the trade entirely. Choose between missing trades or getting bad prices.
Should I use limit or market orders?
Use limit orders when: price precision matters, trading illiquid stocks, entering positions (not urgent). Use market orders when: immediate execution is critical, trading liquid stocks with tight spreads, exiting losing positions at stop levels.
Can a limit order be filled at a better price?
Yes. A buy limit at ₹100 can fill at ₹99 or lower if prices gap down to your favor. A sell limit at ₹100 can fill at ₹102 if prices spike. You're guaranteed your price or better, never worse.
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