Glossary · from the DESK dictionary
Limit Order
An order executed only at a specified price or better.
In plain words
"Buy/sell only at this price or better" — price control over execution guarantee.
In more detail
Limit orders guarantee the maximum (buy) or minimum (sell) execution price, but not that the order gets filled at all if the market never reaches the limit.
Example
A trader places a buy limit order at $95 even though the price is currently at $100, and waits for a pullback.
What it means for traders
An important tool for price control, especially in volatile or illiquid markets.
Common pitfalls
No execution guarantee — the order can go unfilled if the market never reaches the limit.
Related terms
Lowball Limit Order · All-or-None Order (AON) · Away From the Market · Market Order (Best Price, Buy Side) · Buy Limit Order · Combination Order · Day Order · Limit Price · Market Order · Marketable Limit Order · Open Order (Good-Till-Canceled) · Order · Stop-Buy Order · Stop-Limit Order
From the DESK dictionary. For information only, not investment advice.
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DESK is a research tool and not investment advice. Page generated: 2026-10-12.