Using a sell limit order allows you to specify the price at which you are willing to sell a particular security. You can use this type of order in the stock market, the Forex market, and the commodities market. This order can be placed through an online trading platform or with the help of a broker.

Advantage

One of the advantages of using this type of strategy is that you will be able to save money on transaction costs. When you specify how much you want for a security, the order will not be processed unless someone is willing to meet your price. When you use a market order instead, you are at the mercy of the market. Individuals who use market orders are referred to as price takers and are looked upon as easy targets for institutional and professional traders. 

Disadvantage

One of the disadvantages of using a sell limit order is that you may not get your order filled. If no one is willing to pay the price that you are asking for, your order might set there without going through. This could cause you to miss out on profitable trading opportunities and lose money in the long run.

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