What Does Buy Limit Mean at Buying

What Does Buy Limit Mean. A buy limit order prevents you from paying more than a set price for a stock — a sell limit order allows you to set the price you want for your stock. There are two types of limit orders:

When a limit order is placed to buy the stocks of a particular company, the order has to be executed within the same trading session. A limit order is an instruction to your broker to execute a trade at a particular level that is more favorable than the current market price. You are looking to buy the abc / xyz pair, but only at a lower price.

Thus, “slippage” may occur (slippage is where you. Taking the same example as above, let’s assume that a limit order to buy 10 shares of a company at rs 95 per share was placed when the live market price of the same is trading near rs 100 per share. A stop limit order is used to place a limit buy/sell order once the market price reaches the designated stop price. Thus, “slippage” may occur (slippage is where you.