Trading the US market
Limit order
Definition
A limit order buys or sells only at your price or better: a buy limit at $49.80 fills at $49.80 or lower. You control the price, but the order may never fill if price does not reach it.
Example
Say a stock trades at $36.40 and you place a buy limit for 200 shares at $36.00. If the stock opens with a gap down to $35.85, your order can fill there, better than your limit; either way, you never pay more than $7,200. But if the stock dips only to $36.05 and then climbs to $39, your order never fills.
Hypothetical numbers, for illustration only.
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