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Are there any risks to placing a limit order?

April 26, 2017limit placing

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Are there any risks to placing a limit order?

1 Answer

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Posted

When you place a limit order, you are waiting for the stock to move higher. If, while you are waiting, the stock moves lower, you have missed the opportunity to sell at the then current (and higher) levels, waiting for a higher price. This is a risk that will always be present for limit orders.