Understanding Limit Order

What is Limit Order?

Limit order allows an investor and trader  to buy or sell a stock at a price he/she is willing to trade with. This ensures that the investor and trader will never pay more for the stock than whatever price is set as his/her limit. Limit orders also allow an investor and trader to limit the length of time an order can be outstanding before being canceled. Limit orders are especially useful on a low-volume or highly volatile stock.

Difference between Limit,Stop and Market Order?

A limit order differs from a market order, which is executed at the current price regardless of what that price is. It also differs from a stop order, which becomes a market order when the stop price is reached and the order is executed at the best available price.
Limit orders are referred more specifically as a buy limit order ,or sell limit order.
 

Types of Limit Order?

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