Limit Number Contract For Free

Buy limit orders provide investors and traders with a means of precisely entering a position. For example, a buy limit order could be placed at $2.40 when a stock is trading at $2.45. If the price dips to $2.40, the order is automatically executed. It will not be executed until the price drops to $2.40 or below.

To help avoid this situation, some traders place their limit order prices slightly above the best ask price for buy limit orders or slightly below the best bid price for sell limit orders. This allows for a small amount of price fluctuation while still protecting the trader from an unexpected price execution.

Limit Orders Buy Limit: an order to purchase a security at or below a specified price. ... Sell Limit: an order to sell a security at or above a specified price. ... Buy Stop: an order to buy a security at a price above the current market bid. ... Sell Stop: an order to sell a security at a price below the current market ask.

A limit order sets a maximum price that you're willing to pay or a minimum price that you're willing to accept on a sale, whereas a stop order is triggered when an asset reaches a certain price and filled at the next available price.

A limit order, which instructs the broker to buy or sell only at a certain price, is the main alternative to the market order for most individual investors. A market order is an instruction to buy or sell a security immediately at the current price.

If an investor expects the price of an asset to decline, then a buy limit order is a reasonable order to use. If the investor doesn't mind paying the current price, or higher, if the asset starts to move up, then a market order to buy stop limit order is the better bet.

Common Order Types Market Order. This is the most common type of investor order, and brokerage firms typically enter your order as a market order unless you specify otherwise. ... Limit Order. This is an order to buy or sell a security at or better than a specified price (a "limit price"). ... Stop Order.