A limit order is an order to buy or sell a financial asset at a specified price or better. A buy limit order is placed below the current market price, while a sell limit order is placed above the current market price. If the price of the asset reaches the specified limit price, the order will be executed at the limit price or better. However, if the asset’s price does not reach the limit price, the order will not be executed and will remain open until it is cancelled or expires. Limit orders are commonly used by traders and investors to control the price at which they buy or sell assets.