A limit order is an instruction to buy or sell an FX instrument at a specific price or better. A limit order for a ‘Buy’ or long position is typically below the market price while the same is above the market price for a ‘Sell’ or short trade.
For instance, if the bid/ask on the AUD/USD pair is 0.9560/0.9565, you can place a limit order to buy at any price below 0.9565 and a limit order to sell above 0.9560.
