Limit Order

Explanation

A limit buy order executes only at the limit price or lower. A limit sell order executes only at the limit price or higher. This contrasts with market orders, which execute immediately at the best available price. Limit orders protect against adverse price movements but carry the risk of non-execution if the price doesn't reach the limit. In volatile markets, limit orders are preferred because market orders can experience significant slippage — the difference between expected and actual execution price.

How Stoquity Uses This

Stoquity incorporates limit order analysis across its portfolio management platform, providing real-time monitoring and AI-powered insights for every portfolio.