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StockCram is not a broker-dealer, investment adviser, or financial institution. All content is for educational and informational purposes only and should not be construed as personalized investment advice. Consult a qualified financial professional before making investment decisions. Past performance does not guarantee future results.Simple Definition
Buy or sell only at a specific price or better. You control the price.
Why It Matters
Limit orders give you control: 'I'll buy, but only at my price.' If Apple is $180 and you set a limit buy at $175, your order only fills if the price drops to $175 or lower. The trade-off is your order might never execute if the stock doesn't reach your price. Smart investors use limits to avoid overpaying.
Key Points
- Buy limit: Set below current price ('I'll buy if it drops to X')
- Sell limit: Set above current price ('I'll sell when it reaches X')
- Limit orders can stay open for a day (default) or 'good til canceled' (GTC) for weeks/months
Related Terms
Common Questions
Buy or sell only at a specific price or better. You control the price. Limit orders give you control: 'I'll buy, but only at my price.' If Apple is $180 and you set a limit buy at $175, your order only fills if the price drops to $175 or lower.
Limit orders give you control: 'I'll buy, but only at my price.' If Apple is $180 and you set a limit buy at $175, your order only fills if the price drops to $175 or lower. The trade-off is your order might never execute if the stock doesn't reach your price. Smart investors use limits to avoid overpaying.
Buy limit: Set below current price ('I'll buy if it drops to X')
Sell limit: Set above current price ('I'll sell when it reaches X')
Limit orders can stay open for a day (default) or 'good til canceled' (GTC) for weeks/months