Definition – What does Sell Limit Order mean?
A sell limit order is a forex trading order that opens a new short position or adds to an existing short position when a preset price level is breached. A sell limit order is set in advance of price action so that a trader can ensure a trade will take place without constantly monitoring the market. A trader can set more than one sell limit order if he wishes to add to a position in phases rather than all at once.
ForexTerms explains Sell Limit Order
The sell limit order is a useful tool for automating certain trading strategies. The sell limit order can be combined with a take profit order and a stop loss order, creating a position that will close out without the trader being actively involved.