What is a limit order?

A limit order provides an option to an investor or trader to buy and sell stocks at a particular price. For instance, assume that you don’t want to pay more than ₹92 for a stock. Then you can place a buy limit order of ₹92, which means that your order will be executed if the stock price falls at or below that level. Similarly, if you want to sell a stock at ₹100, you can place a sell limit order of ₹100. However, there is also a possibility that your limit order won’t get fulfilled, if the stock doesn’t reach the desired level.


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