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 ?
Part II specifies some basic vocabulary; illustrates how, in a multivenue market, the arrival of a market order, the arrival of a limit order, and the cancellation of an already standing limit order each results in a transaction and/or changes the available quotes; and describes how information concerning the quotes and transactions on these venues is collected and disseminated.
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.
The limit order is an order to buy or sell at a designated price.
My picks: limit order to short AUDUSD in halves at .
We show that trading volumes and other measures of market activity, like the depth of the limit order book, have increased significantly since 2001.
Types of Limit order Limit order Limit order orders Market order Market order Market order Conditional Conditional limit order limit order Best limit Best limit order order Closing/ Continuous Periodic call Periodic call settlement auction for auction auction prices closing price Weighted average (for the last one minute before market closing) for settlement price Margin Fixed amount Fixed percent Fixed percent requirement (per contract) (per contract) (per contract) Initial margin to be required for all futures and options products Initial No initial Initial margin Temporary margin margin required exemption to be requirement required given to trading accounts for KTB futures, options on KTB futures, interest rate futures, currency futures & options, and gold futures
In each case, the TSX ex-day behavior is consistent with the lack of a limit order adjustment mechanism.
Panchapagesan, 2005, "The information content of the limit order book: evidence from NYSE specialist trading decisions", Journal of Financial Markets, 8:25-67
Aitken, Almeida, Harris, and McInish examine the orders of active and passive institutional investors across five (bid) steps of the limit order book; they also test recent theories of order aggressiveness in limit order placement decisions.
And the resulting market - one that's fluid, fragmented and more fully automated - is crying out for a central limit order book, according to "ECN Proliferation: All Roads Lead to a Central Limit Order Book," a research note from TowerGroup, a Massachusetts-based consultancy.