Plain-English definitions, reviewed by an independent investor
Limit Order
A limit order only executes at your specified price or better, protecting you from bad fills.
A limit order only executes at your specified price or better, protecting you from bad fills.
(Fills at limit price or better, else waits)
Why it matters
It controls price but may never fill if the market never reaches your level.
Common confusion
A limit too far from the market simply sits unfilled; a limit too close may partial-fill.
Frequently Asked Questions
Why use a limit order?
To avoid overpaying or underselling in thin or volatile markets.
Can a limit order fail?
Yes, if the price never touches your limit, the order expires unfilled.