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What is a limit order?

Updated over 3 weeks ago

A limit order is an order to buy or sell a stock at a specific price or better. A buy limit order can only be executed at the limit price or lower, and a sell limit order can only be executed at the limit price or higher.

A limit order is not guaranteed to execute. A limit order can only be filled if the stock’s market price reaches the limit price. While limit orders do not guarantee execution, they help ensure that an investor does not pay more than a predetermined price for a stock.

Limit orders will only be filled during regular market hours, and will not fill during the pre-market or after-hours sessions.

It is strongly recommended to enter limit orders for thinly traded stock as the difference between the last sold price, which the chart displays, and the bid and ask can be drastically different.

If you ever have questions, the team is always here for you, so feel free to give us a shout on the app’s Chat or via email at support@public.com.

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