A Limit Order allows you to buy or sell a stock at a specified price or better 🔍

This price, or threshold, that you set is called a limit price

When you buy a stock with a Limit Order, your limit price is the HIGHEST price you’re willing to buy it at, so your order will always be filled at a price less than or equal to the limit price ⭐

For example, imagine that Ploom stock is trading at $50 / share, and you place a Limit Buy Order for 1 share at a limit price of $48 / share 🎯

Because you placed a Limit Order, your order would only be filled at a price of $48 / share or lower ⏰

Sounds great, right?

Well, the catch is that if your limit price CAN'T be met, then your order will never be filled 🚫

For example, if Ploom stock starts going up from $50 / share and its price never drops below $48, your order will never be filled and you would miss out on the gains 📈

When you sell a stock with a Limit Order, your limit price is the LOWEST price you’re willing to SELL it at, so your order will be filled at a price greater than or equal to the limit price ⭐

If you place a Limit Order to sell 1 share of Ploom with a limit price of $55 / share, your order would only be filled at a price of $55 / share or higher!

Unlike Market Orders which can be filled at any price, Limit Orders give you precise control over your order price – making sure you don’t pay more or sell for less than desired ⏳