Limit Order
Financial term in the Investing category
Definition
An order to buy or sell a stock at a specific price or better. Provides price control but may not execute if the price isn't reached. Contrasts with market orders.
Related Terms
Market Order
An order to buy or sell a stock immediately at the best available current price. Guarantees execution but not price. Contrasts with limit orders that specify price.
Stop-Loss Order
An order to sell a stock when it reaches a specific price, limiting potential losses. Becomes a market order when triggered, so execution price isn't guaranteed.
Frequently Asked Questions
What is Limit Order?
An order to buy or sell a stock at a specific price or better. Provides price control but may not execute if the price isn't reached. Contrasts with market orders.
Why is Limit Order important in personal finance?
Limit Order is an important investing concept that helps individuals make better financial decisions. Understanding Limit Order can improve your financial planning and help you achieve your money goals.
How does Limit Order relate to Market Order?
Limit Order and Market Order are related financial concepts. An order to buy or sell a stock immediately at the best available current price. Guarantees execution but not price. Contrasts with limit orders that specify price.
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