|
In trading, a limit order is an order to buy or sell securities for a fixed price or better. For example, an investor can place a limit order to sell shares of company ABC for $100 or more, even if the stock is currently trading for under $95. Such a limit order would be called an above the market order. A limit order can include instructions limiting the time it remains in effect. For instance, a limit order could be good until the end of the day or good until canceled. A limit order book is a list of all buy and sell limit orders in effect for a particular security. In after hours trading, a limit order is beneficial because lower volume can lead to greater price volatility. |
