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What is a buy limit order & sell stop order?

A buy limit order is a limit order to buy at a specified price. A sell stop order is a stop order to sell at a market price after a stop price parameter has been reached. Both buy and sell limit orders allow a trader to specify their own price rather than taking the market price at the time the order is placed.

What is a limit order in financial markets?

A limit order in the financial markets is a direction to purchase or sell a stock or other security at a specified price or better. This stipulation allows traders to better control the prices at which they trade. A limit can be placed on either a buy or a sell order: A buy limit order will be executed only at the limit price or a lower price.

Can I set a limit order to sell below the current price?

Just remember that you cannot set a limit order to sell below the current market price because there are better prices available. In a regular stop order, if the price triggers the stop, a market order will be entered. If the order is a stop-limit, then a limit order will be placed conditional on the stop price being triggered.

Can a limit order fill at a better price?

(Limit orders are generally executed on a first come, first served basis.) That said,it's also possible your order could fill at an even better price. For example, a buy order could execute below your limit price, and a sell order could execute for more than your limit price.

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