What is a Limit Order?

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

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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

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