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Glossary of Option Terms: Limit Order
Limit Order
Definition: Also known as Limit Price. An order placed within your brokerage to buy or sell a specific number of shares/contracts at a set price (limit price). These may cost more than a market order, but are better because they allow investors a specified purchase or sell price when trades go through, they are great to use in low-volume or highly volatile stocks/options.
Related Articles:
- Limit Orders: Dodging The Market Maker’s Bullet & Side Stepping The Liquidity Trap
- Limit Prices: Tip the Odds on Options Trades In Your Favor
- Liquidity & Limit Orders - An Options Balancing Act
- Limit Orders vs. Naked Puts - Getting Paid to Place Them On Your Favorite Stock
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