An instruction to buy no higher than, or sell no lower than, a specified price.
How it works
A buy limit sets the highest acceptable purchase price; a sell limit sets the lowest acceptable sale price. The order controls price but does not guarantee execution.
Example
A buy limit at 48 may execute at 48 or lower, but it may remain unfilled if available sellers never reach that price.
Limitations
Partial fills, queue priority, changing liquidity, and trading halts can affect results. A touched price does not always mean the order was filled.
Evidence LedgerHow this insight was built
Human reviewedThesis being tested
This definition explains Limit Order accurately, with its practical use and material limitations.
Key assumptions
- The named calculation or convention is stated where definitions vary.
- The example is illustrative and not a forecast or recommendation.
What could invalidate the view
- A different market, instrument, jurisdiction, or methodology may use the term differently.
- The cited authority may revise its guidance or terminology.
- Editorial ownership
- Market Master · reviewed
- Approval state
- Reviewed financial content
- Evidence currency
- Current evidence window
- Source coverage
- 2 documented sources
Sources used for this insight