Limit orders are important tools for traders and investors who want to control the price at which they buy or sell an asset. Unlike market orders, which are executed at the current market price, limit orders are only executed when the price reaches the limit set by the trader. This allows traders to buy at a lower price or sell at a higher price than the current market price, improving trade execution and potentially enhancing returns. Limit orders also help prevent slippage, which can occur when market orders are executed at unfavorable prices during periods of high volatility.