Limit Order

Posted in Finance, Accounting and Economics Terms, Total Reads: 641

Definition: Limit Order

A Limit order is the order placed during buying or selling shares at a specific price over a period of time. This is done by an individual with assistance of a brokerage firm for setting the order limit.

However, the order cannot be executed if the price does not touch the specified order limit which is required in the time period. A limit order can also be used by an investor or to be specific any individual who places an order to have the freedom to decrease the limit or the time span in order to cancel an order if required.

A buy limit order is a limit order which is limited by limit price or lower and similarly a sell limit order is on limit price or more. Limit order is less risky as it may or may not be executed if the price is not met. It allows to control the price limit on which an investor or seller is willing to buy or sell a stock.

Hence, this concludes the definition of Limit Order along with its overview.

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