Limit order
An order to buy at or below a set price, or sell at or above it, which controls the price but may not be filled.
A limit order sets the worst price you will accept. If matching orders are available, it executes at that price or better; if not, it waits in the order book until it is filled, cancelled or expires.
Limit orders protect you from slippage but can be partly filled or not filled at all.
Example
The best ask is ₹502. A buy limit order at ₹500 will not execute now; it waits until a seller is willing to sell at ₹500 or less.
Learn more in these lessons
- Market orders and limit ordersWhat is the difference between a market order and a limit order?
- Stop-loss and stop-limit ordersHow does a stop-loss order work?
Related terms
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