It is an order type to buy/sell a share at a specific price. It's helpful to trade security at a desired price. Let's understand limit order with an example
Buy Limit Order
Suppose HDFCBANK is trading at ₹1,400 and you wish to buy it at ₹1,330 so, a limit order can be placed for HDFCBANK and the stock will be bought at ₹1,330 or lower
Sell Limit Order Suppose HDFCBANK is trading at ₹1,400 and you wish to buy it at ₹1,440 so, a limit order can be placed for HDFCBANK and the stock will be bought at ₹1,440 or higher
Note: limit orders can only be placed for 1 day. To place it for a longer period of 1 year, GTT Orders are placed.