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What is a limit order?

Updated: 12/11/2022
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15y ago

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Limit Order is the verbal or electronic instruction for a broker to buy or sell a security (e.g., stocks or bonds) at a specified price or a better price. For buys, the better price is any price lower than the specified price and for sells the better price is any price higher than the specified price.

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Q: What is a limit order?
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Related questions

What does limit mean when buying stock?

It's actually "limit order." It is a direction to a stockbroker to buy or sell at a specific price, or better. If it is a buy limit order, the broker will buy for you if the stock is at the limit order price or lower, and if it is a sell limit order, the broker will sell for you if the stock is at the limit order price or higher. A buy limit order is similar to a long call, and a sell limit order is similar to a long put.


What is a limit order when used in investing?

"A limit order is an amount you are not allowed to exceed. It is the limit, the most you can invest. Make sure you read the fine print before investing in anything."


What is the difference between a stop and a stop-limit order?

The stop limit order combines the characteristics of a stop order and a limit order. A basic stop order will buy/sell your security at the market price once your stop has been reached or passed. A stop limit order will buy/sell the security at a specified price once the stop has been reached or passed. If you use a stop limit, and your limit is too high/low your order may not get filled which will negate the purpose of putting the stop on in the first place. I tend to stick with stop orders if I am trying to protect a loss on a security.


How can you buy a limit order?

One can buy a limit order in much the same way you buy stocks. You can sell them as well and they can be very profitable.


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Where can one find information on limit order services?

Investopedia is likely your best repository for info in this field. They have a general break down of Limit Order definitions of articles of interest.


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What is an abattage?

An abattage is the process of the slaughter of animals in order to limit the spread of disease.


A form that instructs your broker to buy or sell a stock as you request?

Limit Order


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