Series 66: Limit Orders

Limit Orders

A limit order is an order to buy or sell a security at a specific price or “better.” Buy limit orders mean buy at a specific price or lower (a lower price is better for a buyer); sell limit orders mean sell at a specific price or higher (a higher price is better for a seller). Buy limit orders are typically used when an investor wants to buy at a lower price than the market price and is thus waiting for the market to come down to the limit price.