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Investment
Limit Order
An order to buy or sell a stock only at a specific price or better.
Limit orders give you control over price but not over whether the trade actually happens. They are the opposite of market orders, which guarantee execution but not price. Most experienced traders use limit orders to avoid paying too much or selling too cheaply.
It's like telling the shopkeeper 'I'll only buy this shirt if it's £30 or less' instead of paying whatever they ask.
Real world: You place a limit order to buy Nvidia shares at £110 or lower. The order will only fill if the price drops to £110 or below. If the price never reaches your limit, the order stays open or expires.
💡 Limit orders put you in control of the price — but you might miss the trade entirely.