Limit order

An order with a price attached

In detail

A limit order names your price: buy at $1,000 or better, sell at $1,200 or better. It will never fill on worse terms than you set, so there are no surprises. The trade-off is that if the market never reaches your price, the order simply sits there unfilled.

Example

With the stock at $1,050, a buy limit at $1,000 fills only if it drops that far. Stop at $1,010 and nothing happens.

Related terms

Market order Stop order Order book Order validity

Read in the app (App Store)

For learning, not investment advice. Decisions are your own.