Now that we understand the Buy and Sell Stop orders, let’s move on and explore the Limit orders.
As you might have guessed, we also have a Buy Limit and a Sell Limit order.

At times traders will like to enter the market after it has dropped to a specific price level.
For example, some will like to enter the market after a 61.8% Fibonacci retracement or after the price reaches a key support level, or even when the market reaches a trendline or bounces off the lower Bollinger band, to name a few reasons.
As you see, there are many reasons to justify the buy limit order.

Let’s take a look at an example.
Say that the current price for EURUSD is at 1.3500 after a bullish rally from 1.2500.
Many traders who entered the market on time feel very happy about it. However, those standing on the sidelines wished for a correction in price so they could enter as well and enjoy the bull market.
So, they place a Buy Limit order to enter the market at a lower price compared to the current price, say at 1.3000.
The Buy limit order will be triggered only if the price drops to the specified level of 1.3000 or lower.

MT4 and MT5 trading platforms provide both Buy Limit and Stop Limit orders.
Happy trading!