Limit order

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Limit order

An order to buy a stock at or below a specified price, or to sell a stock at or above a specified price. For instance, you could tell a broker "buy me 100 shares of XYZ Corp at $8 or less" or "sell 100 shares of XYZ at $10 or better" The customer specifies a price, and the order can be executed only if the market reaches or betters that price. A conditional trading order designed to avoid the danger of adverse unexpected price changes.

Limit Order

An order to a broker to buy or sell a security at a certain price. That is, a limit order is not an immediate order; rather, it orders the broker to hold the security until the desired price is reached. For example, if stock A is trading at $50 per share, an investor may give his/her broker an order to buy stock A at $35 per share. The limit order may have a time limit on it, or it may remain open until filled. It is also called simply a limit.

limit order

An order to execute a transaction only at a specified price (the limit) or better. A limit order to buy would be at the limit or lower, and a limit order to sell would be at the limit or higher. Limit orders are used by investors who have decided on the price at which they are willing to trade. Compare market order. See also elect, or better, stop order.

Limit order.

A limit order sets the maximum you will pay for a security or the minimum you are willing to accept on a particular transaction.

For example, if you place a limit order to buy a certain stock at $25 a share when its current market price is $28, your broker will not buy the stock until its share price reaches $25.

Similarly, if you give a limit order to sell at $25 when the stock is trading at $20, the order will be filled only if the price rises to $25.

A limit order differs from a market order, which is executed at the current price regardless of what that price is. It also differs from a stop order, which becomes a market order when the stop price is reached and the order is executed at the best available price.

References in periodicals archive ?
20) A computer (the venue's matching engine) matches these posted limit orders with incoming buy and sell market orders, which are orders from traders willing to trade at whatever is the best available price in the market.
Treat an ETF trade like buying or selling an individual stock, and always use limit orders.
Limit orders can be placed on holidays and during non-market hours too.
Prior to the new price improvements on limit orders, most traders experienced usual trading inconvenience that most of their limit entry orders always fill at the limit price even if the market price disparity approvingly through it.
the performance of a stock after an order has been executed, of market orders and marketable limit orders, as well as the realised spread associated with displayed limit orders across US execution venues.
Limit Orders to buy are placed below the market while limit orders to sell are placed above the market.
As a result, forex traders will no longer have the ability to selectively place stop-loss or limit orders on individual trades, nor will traders be able to modify or close trades from the "Open Positions" window.
A collection of limit orders makes up what is known as the limit order book.
High demand and limited supply have forced many retailers to limit orders to two cigars at a time.
Unlike the NYSE, the Toronto Stock Exchange (TSX) does not adjust prices in the outstanding limit orders on ex-dividend days.
Many ECNs and after-hours exchanges attempt to deal with this by requiring limit orders only, but in the long run this is an impractical solution.