Limit order
TradingDefinition
An instruction to your broker to buy or sell a stock only at a specific price (or better). A BUY limit fills at your price or LOWER. A SELL limit fills at your price or HIGHER. If the market never reaches your price, the order simply does not execute. You can cancel it any time.
Use limit orders when you want to control the price you pay, especially for stocks that jump around a lot or trade infrequently. The trade-off: a market order fills immediately at whatever the market offers, while a limit order might never fill if the stock never hits your price.
Use limit orders when you want to control the price you pay, especially for stocks that jump around a lot or trade infrequently. The trade-off: a market order fills immediately at whatever the market offers, while a limit order might never fill if the stock never hits your price.
Example
Nvidia is currently showing buyers at $122 and sellers at $122.50. You set a buy limit at $121, meaning you only want to pay $121 or less. If Nvidia rallies from here, you never buy any shares. If it dips to $121, your order fills.