Glossary entry
A limit order sets the worst acceptable execution price: a maximum for a purchase or a minimum for a sale. It may execute at that price or better when eligible liquidity is available. Price control comes with uncertainty of execution, and touching the limit on a chart does not guarantee the order receives a fill.
Illustrative example
A buy limit at 25 can execute at 25 or less, but it remains unfilled if available sellers require a higher price during its validity.
What to consider
Order priority and available quantity matter. A limit can protect price while leaving the investor with a partial position or no transaction.
General information, not a personal recommendation. Product availability, rights, and obligations are determined by the relevant provider, jurisdiction, and approved agreements.