Investing Basics

What Is a Limit Order?

A limit order is an instruction to buy or sell a security only at a specified price or better. A buy limit executes at the limit price or lower; a sell limit executes at the limit price or higher. Limit orders control the price, but they are filled only if the market reaches that price.

Example

With a stock at 52, a buy limit order at 50 executes only if the price falls to 50 or below.

Duration

Limit orders can be set to expire at the end of the day or remain open until canceled, depending on the broker.

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🔗 Related Terms

Market Order Stop-Loss Order Bid-Ask Spread

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Last updated: September 29, 2026. This definition is for general educational purposes only. It is not financial, investment, tax, legal, or medical advice, and it does not recommend any product or course of action. For decisions about your own situation, consult a qualified professional.