Buy Limit Order

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Dictionary Says

Definition of 'Buy Limit Order'

An order to purchase a security at or below a specified price. A buy limit order allows traders and investors to specify the price that they are willing to pay for a security, such as a stock. By using a buy limit order, the investor is guaranteed to pay that price or better, meaning that he or she will pay the specified price or less for the purchase of the security.

While the price is guaranteed, the filling of the order is not. In other words, if the specified price is never met, the order will not be filled and the investor may miss out on the trading opportunity.

 
Investopedia Says

Investopedia explains 'Buy Limit Order'

A buy limit order ensures that negative slippage will not occur - the buyer will not get a worse price than he or she expects. Buy limit orders provide investors and traders with a means of precisely entering a position. For example, a buy limit order can be put in for $2.40 when a stock is trading at $2.45. If the price dips to $2.40, the order will automatically be executed.

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'Buy Limit Order'

  • I placed a limit order to buy a stock after the market closed, but ...

    http://www.investopedia.com/ask/answers/05/buystoplimit.asp
    ... I placed a limit order to buy a stock after the market closed, but the stock's price
    gapped above the entry price and my order never got filled. ...

  • I want to buy a stock at $30, sell when it reaches $35, don't want ...

    http://www.investopedia.com/ask/answers/06/bracketorder.asp
    ... In many cases, this data is relayed to the broker using three separate orders. First,
    you will buy a security using either a market or a limit order. ...

  • Protect Yourself From Market Loss

    http://www.investopedia.com/articles/trading/09/buy-stop-sell-stop-limit.asp
    ... If you are playing the short side of the market, a buy stop order or buy stop limit
    order can be used to protect your downside if a position moves against you. ...

  • Series 65 Study Guide - Trading Securities - Order Types ...

    http://www.investopedia.com/exam-guide/series-65/trading-securities/order-types.asp
    ... Buy limit order - this order is entered at a price below the current market price
    (since it would not make sense to specify a higher-than-market price!). ...

  • The Basics Of Trading A Stock

    http://www.investopedia.com/articles/basics/03/032103.asp
    ... buy or sell. For example, if you wanted to buy a stock at $10, you could
    enter a limit order for this amount. This means that you ...

  • Brokers and Online Trading: Accounts And Orders | Investopedia

    http://www.investopedia.com/university/broker/broker4.asp
    ... All or None (AON): A stipulation on a limit order either to buy or sell a security
    only if the broker can fill the entire order, not part of it. ...

  • What's the difference between a stop and a limit order?

    http://www.investopedia.com/ask/answers/04/022704.asp
    ... particular stock. For instance, if you want to buy stock ABC, which is trading
    at $12, you can set a limit order for $10. This guarantees ...

  • Beginner's Guide To NinjaTrader: Trading | Investopedia

    http://www.investopedia.com/university/how-to-use-ninjatrader-trading-software/ninja-trader4.asp
    ... option from the drop-down menu 4. Submit order by clicking with the left mouse button
    on any of the Quick Order Buttons (BID places a buy limit order at the ...

  • Series 6 Study Guide - Securities Markets - Transacting Securities ...

    http://www.investopedia.com/exam-guide/finra-series-6/securities-markets/transacting-securities.asp
    ... A buy limit order is executed at the order price or lower, while a sell limit
    order is filled at the specific limit price or higher. ...

  • Understanding Order Execution

    http://www.investopedia.com/articles/01/022801.asp
    ... automatically match buy and sell orders. These systems are used particularly for
    limit orders because the ECN can match by price very quickly. Order to Market ...

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