# Limit order

## 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 ?
The Note also identifies several other factors that are coming together create central limit order book: increased fragmentation of the marketplace, industry-sponsored efforts to create central limit order book, the SEC's call for centralization, availability of high-speed connectivity, acceptance of industry standards for communications, and the strong desire on the part of institutions to streamline the trading process.
The NAC also found that by engaging in this type of conduct and violating the NASD's limit order protection rule, Jawitz abdicated his fiduciary responsibility by not protecting the customers' limit orders.
The US Treasury Cash and Futures Limit Order Books are presented side by side, allowing users to see the relationship and trading opportunities within the markets.
A limit order will also be the First Best bid or offer on CX whenever it becomes the best available bid or offer (or, if there are multiple bids or offers at the same price, if it was the first to be entered into the Cantor System).
ArcaEx operates as an all-electronic auction market, with an open limit order book matching buyers and sellers directly based on simple price and time priority, leveling the playing field for all market participants.
LavaFX provides a Central Limit Order Book of live dealable prices, full price transparency including depth of book, and the ability to place bids and offers together with Lava's sophisticated order types.
In addition, when an individual investor's limit order is equal
N*Aqcess represents another step forward for investors by providing national limit order protection as well as an automated means for individual investor limit orders to match each other.
It can be handy if you like a company but think its stock is a little too rich, as you can place a limit order to buy it if it falls to a lower price.
For instance, a purchase limit order for Rs 50 will work only if there is a seller at Rs 50 or less.
com)-- If the price improvement becomes readily available before traders limit order execute, LGCEX FOREX Desk Execution system will automatically consider executed trades for the new price improvement; this means that traders would benefit from possible low commission rates that the firm offers.
08 seconds Execution Price % of limit orders price improved Limit orders executed at a price better than the requested price 72% Average price improvement per limit order Pip difference between requested and executed price of price improved limit orders (currencies only) .

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