- Limit order
- An order to buy a stock at or below a specified price or to sell a stock at or above a specified price. For instance, you could tell a broker "Buy me 100 shares of XYZ Corp at $8 or less" or to "sell 100 shares of XYZ at $10 or better." The customer specifies a price and the order can be executed only if the market reaches or betters that price. A conditional trading order designed to avoid the danger of adverse unexpected price changes. The New York Times Financial Glossary
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* * *An order that stipulates the price at which a market transaction can be executed. The maximum price is stipulated for a buy order and the minimum for a sell. Limit orders are normally valid until a certain time specified by the client. They can also be Good Till Cancelled (GTC), remaining valid until the limit is reached and the order is executed, or until the order is cancelled.
* * *limit order UK US noun [C] STOCK MARKET► an instruction to a financial organization to buy or sell shares, etc. at or below a particular price, and not above that price, within a certain period: »
Use a limit order to define the price you're willing to pay, which limits your market impact.→ See also BUY LIMIT ORDER(Cf. ↑buy limit order), SELL LIMIT ORDER(Cf. ↑sell limit order)
Financial and business terms. 2012.