Finance glossary
Limit Order
Definition
An order to buy or sell only at a specific price or better.
A limit order sets the maximum price you will pay to buy or the minimum price you will accept to sell. It guarantees price but not execution: if the market never reaches your limit, the order will not fill. Preferred by traders who prioritize price control over speed.
In a sentence
She set a limit order to buy at $50, so the trade would only fill if the price dropped to that level.
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