Limit Order Explained Control Your Trade Price Effectively

1937 reads · Last updated: January 4, 2026

A limit order in the financial markets is a direction to purchase or sell a stock or other security at a specified price or better. This stipulation allows traders to better control the prices at which they trade. A limit can be placed on either a buy or a sell order:The price is guaranteed, but the filling of the order is not. Limit orders will be executed only if the price meets the order qualifications.The alternative to a limit order is a market order, which calls for a trade to be executed at the prevailing market price without any price limit specified.

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