Why it matters
Limits control price, not execution. You might not get filled.
Trading use: the point is not vocabulary. The point is prediction: what changes when this shows up?
Common trap
Assuming a ‘touch’ guarantees a fill. It doesn’t.
Example
Price touches your limit for a split second and runs; you never fill.
Operational cue: if you can’t point to it on the chart, in the DOM, or in your broker logs, treat it as a story and trade smaller.
Notes
Limits are about price discipline. They are not a promise.
Quick rule
- If you see this repeatedly, you are in a different regime than your model assumes.
- Regime change usually means position size change.
- When in doubt: trade smaller, or don’t trade.