Limit Order
Order Types
What it means
An order to buy or sell only at a specific price or better. It guarantees the price but not that the order will fill.
Example
A buy limit at $100 on AAPL fills only if the ask drops to $100 or lower. If AAPL stays at $102 all day, your order never fills.
Mistake beginners make
Beginners set limit prices too tight to "save a penny," then watch the trade run away without them. A missed 5x move costs more than a $0.05 worse entry.
Related terms
- Market Order — An order to buy or sell right now at the best available price. It guarantees execution but…
- Stop Order — An order that sits inactive until a trigger price is hit, then becomes a market order. It …