A Limit Order is a type of order to buy or sell a security at a specified price or better. When purchasing securities, the trader may wish to buy an asset at the limit price but is willing to pay any price up to the limit price. If the security trades above the limit price during the time of the order being executed, the order will be executed, and the security will be purchased. In addition, if the security does not trade at or above the limit price during this time period, then that part of the order would be cancelled. Note that in some cases, investors may also use a stop-loss order to capture profits on an investment when it drops too low.Limit orders are a way to control your profits. It is important to limit order to cover all the possible outcomes of a trade. Settling a limit order takes less time than opening a market order, but it will cost you more in fees. The price at which the limit order can be executed is known as the limit price (or offer). The order will only be filled when the price reaches or passes that price.The person placing the limit order must pay the full size of the order and is not allowed to sell at a lower price. The person receiving the limit order can reject the limit order immediately without paying anything. If a limit order is rejected, the person who placed the order will be charged 0.5% of the size of the order as a fee.You can place a limit order that only executes if the security meets or falls below a certain price. This will help you protect your capital and achieve better profits when you don't want to risk your entire capital. You can place a limit order on the purchase (buy limit order) or sale (sell limit order) of a stock at the specified price or at a better price.
