An order that can only be executed at a specific price or better. Investors usually use limit orders to have more control over the execution price. The limit price allows you to choose a specific price to buy or receive for an asset.
On a purchase order, the limit price would be the maximum amount you are willing to pay for each share.
On a sell order, the limit price would be the minimum amount you are willing to receive per share.
☝️ Important: The execution of limit orders is not guaranteed. There must be a buyer and a seller on each side of the transaction. It is executed if the market price of the stock reaches the limit price, and if there is not enough stock in the market at your limit price, it may take several trades to complete the entire order, or the order may not complete at all.
Buy Limit Order
With a buy limit order, you buy a share at your limit price or at a lower price. Your limit price should be the maximum price you are willing to pay per share.
Example:
HAPIS is currently trading at $20 per share, but you are only willing to pay a maximum of $15 per share. So you set a limit buy order with a limit price of $15.
If HAPIS drops from $20 to $15 or less, and stocks are available, your order should be executed at $15 or less.
If HAPIS does not drop to $15, your order will not be executed.
(This example is shown for illustrative purposes only. In general, understanding order types can help you manage risk and execution speed. However, you can never completely eliminate market and investment risks, it’s usually better to choose an order type based on your investment goals and objectives.)
Sell Limit Order
With a sell limit order, a share is sold at your limit price or higher. Your limit price should be the minimum price you are willing to receive per share.
Example:
HAPIS is currently trading at $15 per share, but you are only willing to receive at least $20 for each share. So you set a sell limit order with a limit price of $20.
If HAPIS increases from $15 to $20 or more, and stocks are available, your order should be executed at $20 or more.
If HAPIS doesn’t go up to $20, your order will not be executed and you will keep your shares
(This example is shown for illustrative purposes only. In general, understanding order types can help you manage risk and execution speed. However, you can never completely eliminate market and investment risks, it’s usually better to choose an order type based on your investment goals and objectives.)
☝️ Important:
Some orders can be placed as valid until the close of the day (Good-for-day (GFD)) or until it is canceled Good-til-Canceled (GTC)). and in some order you can select to execute them while the market is open or in extended hours. Make sure you fully understand in detail the implications or your selection of these options and the risks involved in each case.
We currently do not support crypto, trailing stop order, bracket orders, market-on-close orders, or market-on-open orders.
Any additional doubts on our limit orders? You can contact our support team here. We're here to help!