Buy limit意思

"Buy limit" is a term used in the context of trading, particularly in stock markets, forex, and other financial markets. It refers to an order to buy a security at a specific price or lower. In other words, it's a pre-set order to purchase a security only when its price reaches or falls below a certain level.

When you place a buy limit order, you are instructing your broker to buy the security for you only at the limit price or better. If the market price of the security never reaches the limit price, the order will not be executed. This type of order is used by traders and investors to ensure that they are not paying more for a security than they are willing to pay.

For example, if you are interested in buying a stock and you believe that its fair value is $50 per share, you could place a buy limit order at $49. If the stock price drops to $49 or lower, your order will be executed at the limit price or better (i.e., you might buy it for $49 or even lower if there is sufficient demand at that price). If the price never drops to $49 or below, your order will not go through.

Buy limit orders are a common strategy used by both novice and experienced traders to manage risk and take advantage of opportunities in the market. They can be used in conjunction with other order types, such as market orders (which are executed immediately at the current market price) and stop orders (which are designed to limit losses or lock in profits).