Series 3: 6.3.1.2. Limit Orders

6.3.1.2. Limit Orders

A limit order instructs an exchange to buy or sell a security or futures contract at a specified price or better. The buy limit order states a maximum price at which an investor is willing to buy a specific security or futures contract that is below the current market. The buy limit order will execute if the contract or security can be bought at the specified price or lower. The sell limit order states the minimum price at which the investor is willing to sell a specific contract or security that is above the current market. The sell limit order will execute if the security or contract can be sold at the specified price or higher.

Limit orders are executed on the ex