In simple terms
A limit entry opens a position with a limit order. A buyer specifies the highest acceptable price; a short seller specifies the lowest. The order can execute only at that limit or at a better price.
Example: a buy limit at 100 may fill at 100 or below, but not at 101.
What actually happens
The limit controls price, not entry certainty. The order may remain open, expire, or receive a partial fill. Even if a chart prints 100, earlier orders may have priority or the available quantity may be insufficient. Time in force, queue priority, and eligible sessions depend on the venue and instructions.
Compared with a market order, the trader gives up some execution certainty and speed in exchange for more price control.
Limit
“Price touched my level” does not prove that the order filled. Check order status and actual executions rather than inferring a fill from a candle.
Sources
- Investor.gov, Types of Orders — defines market, limit, and stop orders and states that limit-order execution is not guaranteed.
- FINRA, Order Types — describes limit prices, non-execution risk, and operational differences between orders.