A Limit Order is a type of order used in financial markets, such as stock exchanges and cryptocurrency markets, to buy or sell a financial instrument at a specific price or better. Unlike a market order, which is executed at the current market price, a limit order allows you to set a specific price at which you are willing to buy or sell, and the order will only be executed if the market reaches or surpasses that price.

Here are the key characteristics of a Limit Order:

Price Specification: With a limit order, you specify the price at which you want the trade to be executed. For a buy limit order, this price is lower than the current market price, and for a sell limit order, it is higher.
Execution Only at the Specified Price: A limit order is executed only when the market price reaches or exceeds the limit price you've set. If the market doesn't reach your specified price, the order remains open and unfilled.
Price Certainty: Limit orders provide greater price certainty compared to market orders. They ensure that you buy or sell at a price that is equal to or better than the one you've specified.
No Guaranteed Fill: While limit orders guarantee a specific execution price, they do not guarantee execution. If the market never reaches your limit price, your order may remain unfilled indefinitely.
Control Over Costs: Limit orders allow traders to have more control over the costs of their trades. For example, a trader can place a buy limit order below the current market price to try to secure a better entry point.
Potential for Partial Fills: In some cases, a limit order may be partially filled if the market briefly touches the specified price. The unfilled portion of the order remains open.

Limit orders are commonly used by investors and traders who want to be more precise in their trading strategies. They are especially useful in situations where price certainty is more important than immediate execution. For example, a trader might use a buy limit order to purchase a stock at a lower price than its current market value or a sell limit order to take profits at a specific price target.

However, it's important to monitor limit orders, as they may remain open for an extended period, potentially leading to missed trading opportunities if the market doesn't reach the specified price. Additionally, in rapidly changing markets, limit orders may not be executed if the market price quickly moves away from the specified limit price.