Limit Order
An order to buy or sell an option at a specified price or better.
Explanation
Limit orders provide price control but not execution guarantee. For buying, the limit is the maximum you will pay; for selling, it is the minimum you will accept. In options trading, limit orders are strongly recommended over market orders due to wide bid-ask spreads on less liquid contracts.
Example
You place a limit order to buy a call at $2.50. The order will only fill at $2.50 or lower.