Limit Order
A limit order is an order to buy or sell a security at a specified price or better. A buy limit order can only be executed at the limit price or lower, and a sell limit order can only be executed at the limit price or higher. There is no guarantee that limited orders will be executed. Pending positions may never be filled, or they may be filled after some time. Unless there are not enough buyers or sellers willing to trade at that price, if the security’s market price reaches the limit price, the order will usually be executed. If the security’s market price moves above or below the limit price, limit orders may give investors more control over their trades, but they may also miss opportunities.
