Limit order
An order to buy or sell a share only at a price you set, or better.
A limit order lets you name your price. A buy limit at 400 rupees fills only at 400 or lower; a sell limit at 450 fills only at 450 or higher. You get price control, at the risk that the trade doesn’t happen. Its opposite is a market order, which fills fast at whatever the current price is.
Questions people ask
What is a limit order?
A limit order tells your broker to buy only at your chosen price or lower, or sell only at your chosen price or higher. You control the price, but the order may not fill if the share never reaches it.
Limit order or market order: which fills faster?
A market order fills almost at once at the best available price. A limit order waits for your price, so it can be slower or may not fill at all, but you know the most you'll pay.
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