What is a Limit order?
A limit order is a request to buy or sell a security once a customer-specified price has been reached or surpassed. Once the target price has been reached or surpassed, ShareBuilder will then execute the trade. A limit order is not the same as a stop-loss or stop-limit order. Important: In certain circumstances, it may not be possible to fill a limit order in a single market day. In these cases, ShareBuilder may partially fill the order over multiple days, which can lead to multiple charges of the real-time trade commission. For full commission details, please see the ShareBuilder Pricing & Rates.
A limit order lets you set a price above which you will not buy and below which you will not sell investments. So if XYZ Plc’s shares are currently trading at 752 pence to buy, but you’re only prepared to pay a maximum of 745 pence, you could set a limit order to buy at a maximum of 745p and the order would be dealt if the buy price of XYZ Plc’s shares moved down to 745p or lower. Your order can be for a specific number of shares, or an amount of money and we’ll work out how many shares that is depending on the limit price you set and taking into account the charges and stamp duty (where applicable). You can also set an expiry date for any working day in the future.
