limit order

Definition

An order to a broker to buy a specified quantity of a security at or below a specified price, or to sell it at or above a specified price (called the limit price). This ensures that a person will never pay more for the stock than whatever price is set as his/her limit. This is one of the two most common types of orders, the other being a market order. opposite of no limit order.

Use limit order in a sentence

I was glad that there was a limit order in place because that would ensure that I did not pay too much.

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You may want to place a limit order so that you know exactly how much of the product you will be getting.

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It may seem attractive to place a limit order slightly above market price rather than selling at market price and rely on the noise in the price to take it over that limit, in the unlikely cases where this fails and the price never hits the limit the losses are large.

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either-or order stop-running