Glossary Term

Limit Order

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Limit orders are instructions you give to a brokerage to take a specific action on your account if the price reaches a certain predefined level. Limit orders come in two varieties, buy limit orders and sell limit orders. With a buy limit order, you would specify that you wish trade is made at a certain limit price or lower. In the case of a sell limit order you would specify that a trade be made at a certain limit price or higher. Limit orders are a useful way to have some control over your positions while you’re away from the charts, they guarantee that a trade will only be made at your limit price or better.

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What is limit order? A Traders Expert explanation

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