What Is a Limit Order and How Can It Be Used to Mitigate Slippage?

A limit order is an instruction to buy or sell an asset at a specific price or better. By setting a maximum buy price or minimum sell price, a trader ensures that the order will only be executed if the desired price is available.

This prevents the order from "walking the book" and executing at increasingly worse prices, thereby completely mitigating the risk of adverse slippage, though the order may not be fully filled.