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Limit Order

A limit order lets you set the exact price you’re willing to pay (buy) or accept (sell).

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Written by Nathaniel O'Dell

How it works:

  • Executes only at your specified price or better

  • Will not execute if the market doesn’t reach your price

Best for:

  • Price control

  • Volatile markets

Risks:

  • Order may never fill

Example:
You place a limit buy at $48.
If the stock never drops to $48, the order remains unfilled.

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