limit order
Quick Summary
A limit order is a type of financial order used to buy or sell securities at a specified price or better. This means you set a maximum price you're willing to pay for a security or a minimum price you're willing to accept for selling it.12
Key characteristics of a limit order:
* Guaranteed Price, Not Execution: A limit order guarantees you will get your specified price or a more favorable one. However, if the market never reaches your set price, the order will not be executed.2
* Control Over Price: It offers more control over the execution price compared to a market order, which executes at the current market price and doesn't guarantee a specific rate.2
* Use Cases: Investors often use limit orders when they want to buy a stock at a lower price than it's currently trading or sell a stock at a higher price than its current market value.2
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