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The specific price you set on a limit order - the worst price you are willing to accept.
Why It Matters
The limit price is the heart of a limit order. On a buy, it's the maximum you'll pay; on a sell, it's the minimum you'll accept. The order can fill at your limit price or anything better, but never worse. Where you set it is a balancing act: closer to the current quote means a faster, more likely fill; further away means a better potential price but a higher chance the order never executes.
Key Points
- Buy limit price = the most you will pay
- Sell limit price = the least you will accept
- Closer to the quote fills faster; further away may not fill
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Limit Orders Explained
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Related Terms
Common Questions
The specific price you set on a limit order - the worst price you are willing to accept. The limit price is the heart of a limit order. On a buy, it's the maximum you'll pay; on a sell, it's the minimum you'll accept.
The limit price is the heart of a limit order. On a buy, it's the maximum you'll pay; on a sell, it's the minimum you'll accept. The order can fill at your limit price or anything better, but never worse. Where you set it is a balancing act: closer to the current quote means a faster, more likely fill; further away means a better potential price but a higher chance the order never executes.
Buy limit price = the most you will pay
Sell limit price = the least you will accept
Closer to the quote fills faster; further away may not fill