What does a buyer typically signify when placing a limit order?

When a buyer places a limit order, they are indicating a desire to purchase a certain quantity of an asset at a specific price or lower. This type of order allows the buyer to have control over the purchase price, preventing them from paying more than they are willing to spend. By setting their price, the buyer can avoid market fluctuations that may cause the price to rise above their threshold.

This approach is particularly useful for those who are looking to buy an asset when it reaches a level they believe represents good value, rather than rushing into immediate trades where the price might be higher than they anticipated. The limit order ensures that they will only buy the asset at their determined price or potentially at a lower price if the market turns in their favor.

In contrast, other options relate to different strategies or intentions: selling at a high price, seeking immediate execution, or capitalizing on volatility. These do not align with the specific nature of a limit order's function to control purchasing price.