Limit Order
What is it? An order to buy or sell a security at a designated price or better. The trade will only be executed when the price is within this restriction.A sell limit order directs the broker to sell a security only at the specified price or higher. For example, if you put in a limit order to sell Go Up Corporation at $55 when the stock is selling for $50, the trade wont be executed until the price reaches $55.A buy limit order directs the broker to purchase a security only at the specified price or lower. If you put in a limit order to buy Go Down Corporation at $50 and the stock is selling for $50 1/8, the trade wont be made unless the price drops to 50.Added By: Paige
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