What is a Buy Limit Order?
Buy limit orders are orders to a broker that involve purchasing a given stock or security only when the asset reaches a designated price. In the event that the security does not ate least reach the price specified in the buy limit order, the order to the broker remains unexecuted until such time as the investor chooses to withdraw the buy limit order. Investors will sometimes choose to enter a buy limit order as a means of getting into a profitable venture. By setting a limit price on a particular security, it is possible for the investor to determine the point at which the investment would be worth pursuing. Generally, the price is locked in with anticipation that the security will continue to increase in value and eventually create a significant amount of profit from the transaction. Placing a buy limit order is considered to be one of the safest approaches to acquiring new securities for the portfolio. In the event that the stock or bond does not reach the price set forth in the ord
There have been hundreds of movies featuring a pressure-cooker scene that takes place on the floor of the New York Stock Exchange. Stockbrokers and runners are featured screaming, “buy” and “sell,” scurrying around the place at a feverish pace and the environment seems extremely stressful. Those actors who are reacting to a mysterious phone call are reenacting what is called a Buy Limit Order. A Buy Limit Order is a request for a broker to purchase an order to a specified quantity of a security at or below a specified price (called the limit price). These instructions come directly from a customer and are being acted upon by their representative. The order can be extremely simple are incredibly complex, depending on the desire of the consumer. There are many types of Buy Limit Order that differ from market to market. Some examples are market orders, limit orders, time in force, conditional orders, stop orders, market-if-touched order, one cancels other order, tick sensitive orders, dis
