What does a limit order do?

Huobi. “Stop-limit” order refers to the pre-set stop (trigger) price and limit price and amount after trigger . When the latest price reaches the trigger price, the order will be placed according to the pre-set price to help users maintain profits or reduce losses.

A limit order is an order to buy or sell a stock at a specific price or better . A buy limit order can only be executed at the limit price or lower, and a sell limit order can only be executed at the limit price or higher. A limit order is not guaranteed to execute.

What Is a Buy Limit Order? A buy limit order is an order to purchase an asset at or below a specified price, allowing traders to control how much they pay. By using a limit order to make a purchase, the investor is guaranteed to pay that price or less . While the price is guaranteed, the order being filled is not.

A limit order is the use of a pre-specified price to buy or sell a security. For example, if a trader is looking to buy XYZ’s stock but has a limit of $14.50, they will only buy the stock at a price of $14.50 or lower .