This is my first post here and it's probably a dumb question to most of you, but I need to make sure I'm understanding this term correctly. I've been doing a lot of reading lately and keep seeing this similar terminology but no clear explanation of it. What does it mean if someone is talking about a strategy and they say something like "If this condition exists, we enter the next day on a 5% limit"? I assume limit means limit order, but what is meant by the 5%? Does this mean to set a limit order at up to +5% of the closing price? Thanks!