RiskPicksWhat is a Limit Order?
A limit order sets the maximum price you'll pay (buy limit) or minimum price you'll accept (sell limit). Unlike market orders, limit orders guarantee your price but don't guarantee execution.
When to use limit orders
- Entries at specific levels: buy at a support level you've identified
- Profit targets: sell at your predetermined target price
- Wide-spread stocks: avoid paying the full spread on illiquid stocks