GlossaryBeginner
Limit Order
An order to buy or sell only at a specific price or better.
A limit order instructs an exchange to buy or sell only at a specific price, or better, rather than immediately at the current market price.
A limit order isn't guaranteed to fill: if the market never reaches the specified price, the order simply remains open, or unfilled, until it's cancelled or the price is reached.
Examples
- A limit order to buy below the current price will only fill if the price drops to that level.
- Limit orders give price certainty but no guarantee of execution.