What Is a “Limit Order” and How Does It Mitigate Execution Risk from Fee Spikes?

A limit order is an instruction to buy or sell a security at a specified price or better. It allows a trader to control the price they execute at, mitigating the risk of poor execution due to market volatility.

While it does not directly control the network fee, a trader can wait for the fee spike to subside before submitting the order, or use a lower fee bid, accepting a delay in execution but ensuring the trade is profitable at the desired price.