Definition and example
A buy limit accepts its limit or a lower price; a sell limit accepts its limit or a higher price. Price is constrained, but execution is not guaranteed.
Synthetic example: a buy limit at 100 may remain pending if sellers are only available at 101. Even seeing a trade at 100 does not prove your quantity would have filled: availability and priority matter. Check status and validity. Cancelling the remaining order does not undo fills that have already occurred.
Sources and references
Chezur examples and explanations are educational. Consult the original source to verify conditions, data and updates.
Context and review of this explanation
Which prices does a limit order permit?
- Topics
- Orders and execution
- Level
- Beginner
- Skills
- Explain an order instruction
- Examples
- Hypothetical situations illustrating the concept.
- Specialist review
- Not documented for this edition. Automated structure and internal-link checks do not establish specialist review.