A limit order lets you set the maximum price you're willing to pay (for buys) or the minimum price you're willing to accept (for sells).
How limit orders work
- Buy limit order: Your order will only execute at your limit price or lower
- Sell limit order: Your order will only execute at your limit price or higher
When to use a limit order
Limit orders work best when:
- You want to control the exact price you pay or receive
- You're trading a volatile stock and want price protection
- You're willing to wait for your target price (and accept that your order may not fill)
Time in force
When placing a limit order, you can choose how long the order stays active:
- Good for Day (GFD): Order expires at the end of the trading day if not filled
- Good til Canceled (GTC): Order remains active until filled or you cancel it (up to 90 days)