Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. You could sustain a loss of some or all of your initial investment and should not invest money that you cannot afford to lose. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

Limit order definition

Limit order has a particular significance in relation to IG's platform. Here, we define limit order in general investing and explain what it means to you when trading with IG.

A limit order is an instruction to your broker to execute a trade at a particular level that is more favorable than the current market price.

They differ from market orders, which instruct your broker to execute a trade at the best current available price. Limit orders allow you to specify the minimum price at which you will sell, or the maximum at which you will buy. If you want to open an order to buy or sell an asset at a price that is less favorable than the current market price, you use a stop order.

There are two varieties of limit orders; entry orders (that open a new position) and closing orders (that terminate an open position). By using both, traders are able to execute a trade automatically at a certain level instead of constantly tracking the price of an underlying asset.

With IG

When trading with IG, stop and limit entry orders are referred to as orders to open. When completing an order to open, you can specify whether your order is a stop or a limit.

You can also add a closing order at the time of opening your order, specifying the stop and/or limit conditions at which you would like the position to be closed.

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