Limit Order vs. Market Order: What's the difference?3 min read . Updated: 04 Jun 2022, 09:30 AM IST
- When an investor wants to buy or sell a security, but not at the prevailing market price, they can put a limit below which (or above which) they won’t sell (or buy). This is known as a limit order. We decode this for you in detail
A limit order is a type of order to buy or sell a security at either a predefined price or better than that. For buy limit orders, the order will be executed only at the limit price or a lower one, while for sell limit orders, the order will be executed only at the limit price or higher. This gives merchants more control over the prices at which they transact.
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