 What happens when a lot of traders place limit orders at the same price? A few things could happen, but first, what's a limit order? A limit order is a passive order waiting to be filled to buy or sell a security with the restriction. For example, I'm putting my house up for sale for $1 million minimum, and I'm not willing to compromise on the price. The deal will not be completed until a buyer decides to accept my offer. This is a sale limit order, or in other words, a passive asking price. So back to our question. What can happen when a lot of traders place limit orders at the same price? A large number of buy limit orders can act as a support level, preventing price from dropping below it, and a large number of sell limit orders can act as a resistance level. It can also indicate potential interest in specific prices, influencing market sentiment and participant decisions. Learn more trading for free on bookmap.com slash learning.