Limit Order

A limit order instructs your broker to execute a trade only at a specified price or better—at or below the limit price for buys, at or above for sells. Unlike market orders, limit orders guarantee price but not execution. They're useful for entering positions at predetermined levels, taking profits at target prices, and avoiding slippage in volatile markets. Limit orders can be day orders (expire at market close) or good-till-canceled (GTC). While they provide price control, limit orders risk not being filled if the market doesn't reach the specified price.