### Category Delahunt37199

A limit order to buy stock follows the same logic - you’re telling your broker that you’re willing to pay \$X per share for a stock, but obviously you want it for less if they can find a willing seller at a lower price. A limit order to sell stock works the same way, except \$X becomes the lowest price you’d be willing to accept to sell your shares.

## Depending on whether an investor has a long or short stock position, she may enter a buy stop order or a sell stop order: Buy stop orders: These orders protect a

### So, of all buy orders available in the market at any point of time, a seller would E.g. If for stop loss buy order, the trigger is 93.00, the limit price is 95.00 and the

2 Dec 2019 If he places a buy limit order at \$50 and the stock falls only to exactly the \$50 level, his order is not filled, since \$50 is the bid price, not the ask  A buy limit order can only be executed at the limit price or lower, and a sell Example: An investor wants to purchase shares of ABC stock for no more than \$10. They serve essentially the same purpose either way, but on opposite sides of a transaction. A limit order gets its name because using one effectively sets a limit on

### Limit orders are a similar stock order type to a market order but they limit the price at which the stock is bought or sold. Similarly you can place a limit order so that it will sell below or at a set price, when selling the stock.

A limit order is an order to buy or sell a stock at a specific price or better. A buy limit order can only be executed at the limit price or lower, and a sell limit order  For example, say you want to buy a stock and you think it's worth buying at \$5 … but the stock  So, of all buy orders available in the market at any point of time, a seller would E.g. If for stop loss buy order, the trigger is 93.00, the limit price is 95.00 and the

## Limit orders are a good tool for investors buying and selling smaller company stocks, which tend to experience wider spreads, depending on investor activity. They’re also good for investing

Buy limit orders also are used by investors looking for a good deal on a stock. The investor places a limit order for the desired price and waits for the price to drop. Investors use sell limit orders to prevent their stocks from selling below a desired price. In addition, a limit price of \$16.35 could be set. If the price moves to \$16.40 or below, the trigger price, then a limit order will be placed at \$16.35. Since it is a limit order, the buy will only be executed at \$16.35 or below. For a sell order, assume a stock is trading at \$16.50.

A limit order is an order to buy or sell a stock at a specific price or better. A buy limit order can only be executed at the limit price or lower, and a sell limit order can only be executed at the limit price or higher. A limit order is not guaranteed to execute. A limit order can only be filled if the stock’s market price reaches the limit price. While limit orders do not guarantee execution, they help ensure that an investor does not pay more than a pre-determined price for a stock.