Definition of Limit Order
An order to buy below or sell above the current market price. A buy limit is placed below the market, and a sell limit is placed above the market. The order executes only if the price reaches the specified level.
At a glance
Term
Limit Order
URL slug
limit-order
Category
Orders & execution
Short answer
An order to buy below or sell above the current market price.
Deep dives
Full A–Z glossary
Example
Example: a buy limit below market does not guarantee a fill if price never prints at your limit. Choose “Limit Order” based on price priority versus fill priority.
Common mistake
Common mistake: using “Limit Order” as loose slang while your broker/platform specification defines it more narrowly.
Professional tip
Tip: bookmark this “Limit Order” page and reopen it when reading broker specs so definitions stay consistent.
Practice tools:
Related terms
FAQ
An order to buy below or sell above the current market price.
Order type and fill behaviour around “Limit Order” decide whether entries and stops execute near the price you planned.
Common mistake: using “Limit Order” as loose slang while your broker/platform specification defines it more narrowly.