Limit Order/Limit Buy/Limit Sell
A Limit Order pertains to a classification of an order to either buy or sell a security at a set price.
In the context of Limit Buy orders, the order will be placed only at the limit price specified or at a lower one. For Limit Sell orders, the order will only be launched only at the limit price or at a higher one. This provision allows for better control prices that traders transact.
Through the use of a buy limit order, the investor is ensured to pay the specified price or less. However, despite the price already being guaranteed, the order being filled is not guaranteed. With this in mind, it must be noted that Limit Orders will only be executed once the security price meets the order qualifications.