How Do You Buy Stocks Using A Limit Order?
This article will explain how to buy stock using a limit order and also why it is important to use limit orders versus market orders. To make a limit order you will first need to know what the current stock that your try to purchase is trading at. If you buy and sell stocks online then you probably have an account with an online trading company. Log-in to your account and look up the stock by the stocks symbol. Say the stock you want to buy is trading at $1.50 a share but you want to buy the stock when it drops below $1.50 per share. This is where it is helpful to place a limit order. If you don’t trade online you can just tell your broker you want to put a limit order for the amount of shares you want at the limit price of say $1.49 or less. Depending on how many share you buy it can be a very expensive move. If you bought $100,000 of a stock at $1.50 a share you would have 66,666 shares but if you placed a limit order to buy at $1.49 then you would own 67,114 shares ( a difference of
