Investing Dictionary
Basics

What is Limit Order?

Buy or sell only at a specific price or better

Full Explanation

A limit order lets you set the exact price you're willing to buy or sell at. You might not get filled immediately (or at all), but you won't get a worse price than you set.

Real-World Example

Stock is at $102. Set a limit buy at $100 — only buys if price drops to $100 or below.

Pro Tip

Use limit orders when the price matters. Use market orders when speed matters.

Related Basics Terms

Stock Split

When a company divides its shares into more, cheaper pieces

Ticker Symbol

The short code used to identify a stock

Yield

The income you earn on an investment as a percentage

After-Hours Trading

Trading after the market closes at 4 PM ET

View all Basics terms →

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