Limit Order – A type of order to buy or sell a security at a specified price or better. For buy limit orders, the order will only be executed at the specified limit price (or a lower price). For sell limit orders, the order will only be executed at the specified limit price (or a higher price). Using limit orders lets traders have better control over the prices they trade. Using a buy limit order guarantees that a trader or investor will pay a specified price or less. However, it is not guaranteed that the order will actually be filled.
We don't know everything about the markets. We're just devoted to learners. Taken from those smarter than ourselves, here's how we define Limit Order.