In plain English
What Limit order means
A limit order adds price control. A buy limit sets the highest price you are willing to pay; a sell limit sets the lowest price you are willing to accept. If the market never reaches your limit, the order may remain unfilled.
Why it matters
Limit orders help traders control entry and exit prices, which is especially important when spreads widen or volatility rises. The tradeoff is that you may miss the fill entirely if the market moves away before your order is matched.
Example
If GBP/USD is trading at 1.2710/1.2712 and you place a buy limit at 1.2705, the order can fill only at 1.2705 or lower. If price never falls to that level, the order stays pending.
Quick answers
Common questions
Can a buy limit fill above the limit price?+
No. A buy limit should execute only at the limit price or lower.
Why use a limit order instead of a market order?+
To avoid paying more than your target price, even if that means the order may not fill.
Sources