What is a Limit order?
When you place a limit order to buy, the stock is eligible to be purchased at or below your limit price, but never above it. You may place limit orders either for the day on which they are entered (a Day order), or for a period that ends when it is executed or when you cancel (an open order or Good ’til Canceled (GTC) order) Please note: All open GTC orders will expire 120 calendar days after they are placed. If the 120th day falls on a weekend or holiday, those orders will expire on the first business day following the expiration day. This policy does not apply to options. Orders at each price level are filled in a sequence that is determined by the rules of the various market centers; therefore, there can be no assurance that all orders at a particular price limit (including yours) will be filled when that price is reached. Such orders are also subject to the existence of a market for that security. Thus, the fact that your price limit was reached does not guarantee an execution. See
A limit order is where you nominate a rate at which you want to open a deal. When and if this rate occurs in the market, your ‘reserved’ deal is automatically opened. Once the deal is opened it is treated like a Day Trade with the details appearing in My Account. Easy-Forex® does not charge for this service. This saves you watching the market every minute to see whether the rate you want happens.
Stocks are a matter of pure chance in most cases. Unforeseen events such as weather or wars can wreak havoc on share prices of stocks. It’s a good idea to set limits on your activity, so you don’t get burned. Even if you buy and sell your own stocks, you must depend on at least one other person or entity to ultimately carry out the transaction. It is to this person or entity that you will report your desire to buy or sell at a certain price. You will decide on whatever price you are willing to settle for or achieve, and then tell the transaction agent what that price is. This is called a limit order. The main advantage of a limit order is that you as the investor can control the maximum or minimum price at which your money is spent or earned. If you specify in your limit order that your limit price is $100 a share, then you will know the limit of the transaction. You will usually specify how many shares you wish to buy or sell as well. Using the same example, if you set a limit price o
