Limit Order
InvestingGlossary term
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 OrderAn 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 OrderAn 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.
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