Limit Order

An order placed with a brokerage to buy or sell a set number of shares at a specified price or better. Limit orders also allow an investor to limit the length of time an order can be outstanding before being canceled.

Depending on the direction of the position, limit orders are sometimes referred to more specifically as a buy limit order, or a sell limit order.

Limit orders typically cost more than market orders. Despite this, limit orders are beneficial because when the trade goes through, investors get the specified purchase or sell price. Limit orders are especially useful on a low-volume or highly volatile stock.


Investment dictionary. . 2012.

Look at other dictionaries:

  • Limit-Order — Orderzusätze oder Handelsoptionen sind Bezeichnungen, die eine Wertpapierorder genauer bezeichnen und bestimmte Bedingungen stellen, unter denen diese Order ausgeführt werden soll. Es gibt generell die Unterscheidung zwischen unlimitierten und… …   Deutsch Wikipedia

  • limit order — An order in which the customer sets a limit on the price and/or time of execution. Chicago Board of Trade glossary An order to buy a stock at or below a specified price, or to sell a stock at or above a specified price. For instance, you could… …   Financial and business terms

  • Limit order — An order to buy a stock at or below a specified price or to sell a stock at or above a specified price. For instance, you could tell a broker Buy me 100 shares of XYZ Corp at $8 or less or to sell 100 shares of XYZ at $10 or better. The customer… …   Financial and business terms

  • limit order — / lɪmɪt ˌɔ:də/ noun an order to a broker to sell if a security falls to a certain price …   Dictionary of banking and finance

  • Limit-Order — Lị|mi|t|or|der, Lị|mit Or|der, die; , s [aus ↑ Limit u. ↑ Order] (Börsenw.): Kauf od. Verkaufsauftrag, bei dem eine obere od. untere Preisgrenze angegeben wird …   Universal-Lexikon

  • limit order — noun also limited order : an order to buy securities at a specified maximum price or sell them at a specified minimum price * * * Stock Market. an order to buy or sell a specified amount of a security at a specific price. Also called limited… …   Useful english dictionary

  • limit order — Stock Market. an order to buy or sell a specified amount of a security at a specific price. Also called limited order. Cf. stop order, market order. * * * …   Universalium

  • limit order — /ˈlɪmət ɔdə/ (say limuht awduh) noun Finance an order to buy or sell a security at a price specified by the customer, or at a better price if such price can be obtained. Also, limited order, limited price order …   Australian English dictionary

  • Limit Order — Kauf oder Verkaufauftrag von Wertpapieren mit festgelegtem Preis (⇡ Limit) oder auch festgelegter Zeit …   Lexikon der Economics

  • limit order — See at limit …   Big dictionary of business and management

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