There are two ways to limit the price of a limit order: one is to sell the order at or above a certain price; The other is a buy order executed at or below a certain price. Whether the limit order can be executed depends on the market transaction price at that time. The advantage of this instruction is that the customer has stipulated the lowest price level acceptable to the floor traders, and the basic trading interests of the customer can be guaranteed. The disadvantage of this instruction is that the customer's intention is difficult to realize, because it will be directly affected by market price fluctuations.

Take the foreign exchange platform as an example. When placing an order, the buying limit and selling limit of the foreign exchange platform are both limit orders.

A. Buy at a limit price, and the price specified in the limit order is lower than the current price (this price is lower than the current price, which is conducive to buying at the current price. When the exchange rate drops to this level, the system will automatically execute the instruction to buy the specified currency pair. At that time, the exchange rate was 1.2 120 and the limit order was set to 1.2080. If the exchange rate drops to 1.2080, the system will automatically buy the specified currency pair.

B. Sell at a limit price, and the price specified in the limit order is higher than the current price (this price is higher than the current price, more favorable than the current price, and sold at a high price). When the exchange rate rises to this level, the system will automatically execute the instruction to sell the specified currency pair. At that time, the exchange rate was 1.2 120, and the limit order was set to 1.2 175. If the exchange rate rises to 1.2 175, the system will automatically sell the specified currency pair.