A Buy Limit Order is the maximum price you are willing to buy at. The order will be executed at that price or lower.
Example:
- TSLA is trading at $1,000 but you only want to buy if it drops to $950. So you would place a Limit Order for $950 and if it drops to this price or lower, we will execute the Buy Limit Order
- There are 2 options to select from in terms of when the order would expire if the limit price is not reached:
- At the end of trading on the next US business day
- When the customer chooses to cancel
A Sell Limit Order is the minimum price you are willing to sell at. The order will be executed at that price or higher.
Example:
- TSLA is trading at $1,000 but you only want to sell if goes up to to $1,050. So you place a Sell Limit Order for $1,050 and if it goes up to this price or higher, we will execute the Sell Limit Order
- There are 2 options to select from in terms of when the order would expire if the limit price is not reached:
- At the end of trading on the next US business day
- When the customer chooses to cancel
*Please note, in cases of low asset liquidity, limit orders may not execute when asset price reaches the target price. There needs to be a buyer and seller on both sides of the trade. If there aren't enough shares in the market at your limit price, it could take multiple trades to fill the entire order, or the order may not be filled at all.