Posted in Marketing and Strategy Terms, Total Reads: 406
Definition: Time Limit Order
Time limit order also called time order is a customer order that has been set under a time limit for execution otherwise it will get cancelled. When the order has been placed at that time limit has been set under which execution to be done and failure leads to cancellation of order automatically.
When an order to be executed for a specific transaction in a specific time limit it is known as time limit order.
Depending upon the specifications of the order, if execution not done on time then either the order becomes market order (an order in which broker has to execute the order at best price available in the market), limit price order (an order which is given to broker to buy specific number of securities at or under limit price) or get cancelled. Before placing a time order such kind of specifications are done whether order will get cancelled; or changed to market or limit order if not completed on time.