Investing term
What is Limit order?
Buy only at $X or better — price-protected, but may not fill.
A limit order tells your broker to buy or sell only at a specified price or better, giving you price protection at the cost of certainty. A buy limit fills at your price or lower; a sell limit at your price or higher. The trade-off: if the market never reaches your price, the order simply doesn't execute — protection against bad fills, but no guarantee you'll trade.
For example
You set a buy limit at $50; the order fills only if the stock drops to $50 or below — never paying more, but possibly never filling.
Limit order is taught hands-on in Stage 5 — How Markets Work Globally.
See the lesson →