Limit Order (Limit Buy Order, Limit Sell Order)
Definition of 'Limit Order (Limit Buy Order, Limit Sell Order)'
Say the market is trading at 1120 and you want to buy at no more than 1110 you would put a limit buy order in the market at 1110. Your limit order would be added to the end of a queue of orders sitting at this price. In an electronic market, if the market trades through this price (1110), then your order is guaranteed to be filled. If the market trades down to this price but does not go through it then only some of the orders will be filled and it is possible that your order is not filled or partially filled.
If your order is for a pit traded symbol then it's possible (although rare) that the market will trade through your order and you won't get filled. This is due to you broker and their pit trader not filling your order when the market trades there.
Limit orders are not the same as stop limit orders.
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