How Do You Place a Buy Limit Order? To place a buy limit order, you will first need to determine your limit price for the security you want to buy. The limit price is the maximum amount you are willing to pay to buy the security. If your order is triggered, it will be filled at your limit price or lower.
The order only trades your stock at the given price or better. But a limit order will not always execute. Your trade will only go through if a stock's market price reaches or improves upon the limit price. If it never reaches that price, the order won't execute.
A trader who wanted to sell the stock when it reached $142 would place a sell limit order with a limit price of $142 (red line). If the stock rose to that level or higher, the limit order would be triggered and the order would be executed at $142 or above.
Limit: an order to buy or sell a stated amount of bonds at or above a specified price. Reserve: a limit order with a portion of the size displayed, with a reserve portion of the size (the reserve size) that is not displayed.
A limit order is an order to buy or sell a stock with a restriction on the maximum price to be paid (with a buy limit) or the minimum price to be received (with a sell limit). If the order is filled, it will only be at the specified limit price or better. However, there is no assurance of execution.