Jul 16, 2025 · A limit order allows traders to set a pre-determined price to buy or sell a security. For example, imagine a trader who wants to buy stock in XYZ company, currently trading for $17.00.

Jun 11, 2024 · Market orders, limit orders, and stop orders are common order types used to buy or sell stocks and ETFs. Learn how and when a trader might use them.

Jul 4, 2025 · If the market price of a stock does not reach the limit price — either a price floor or price ceiling — then the limit order will not execute, and the limit order will remain active until it does.

2 days ago · Investors use limit orders when they are concerned that a stock's price might suddenly change by a significant amount or when they are not overly interested in executing a trade right …

Investors generally use a sell stop order to limit a loss or protect a profit on a stock they own. Learn More. The most common types of orders are market orders, limit orders, and stop-loss orders.

Dec 31, 2025 · A limit order is an instruction to buy or sell an asset at a specific price or better, giving the trader control over the price but not a guarantee that the trade will happen. It is one of the most …

Aug 16, 2024 · Unlike a market order that buys or sells a stock at the best available price, a limit order only happens if the price is at or better than a price you set. Limit orders allow investors to specify …

Mar 10, 2011 · A limit order can only be filled if the stock’s market price reaches the limit price. While limit orders do not guarantee execution, they help ensure that an investor does not pay more than a …

Nov 8, 2024 · At its core, a limit order is a command investors issue to their brokers specifying the precise price at which they are willing to buy or sell a particular stock. This mechanism allows market...

Dec 29, 2024 · Limit price, or limit order, is a fundamental concept in stock trading that allows investors to specify the exact price they are willing to buy or sell a stock.