Limit Order

The limit order is placed when you are looking to enter a new position, or to exit an existing position at a specific price Or Better, essentially an order to buy or sell at a designated price. Limit Orders to buy are placed below the current price and limit orders to sell are placed above the current price. Even though you may see the market touch a limit price several times, this does not guarantee a fill at that specific price it would need to trade thru the limit price. This order initiates the trade at a specific price 'or better' if able. The limit order ensures that a trader will never pay more for the commodity than whatever price is set as the limit. This is one of the two most common types of orders, the other being a market order.

Or Better: The commodity pit broker is obligated to get the best possible price for the trader. Think of an OB order as a market order with a limit. If the price does not have an OB next to it, and the market is considerably better, the commodity broker may question the runner to see if the order should have been a stop. They may return the order for clarification, which could delay execution and possibly change the results of the fill.

 Good Till Canceled                    ; Commodity Order Types                     Market If Touched 

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