Limit Order

A limit order is a specific order type that allows an investor to buy or sell a security at a particular price.

• •For buy limit orders, the order usually executes at the limit price or lower.
• •For sell limit orders, the order usually executes at the limit price or higher.

This strategy allows investors control over the prices of the securities they trade. Investors using a buy limit order are guaranteed to pay the price listed or less.