Order Type
Limit Order — Definition & Example
An order to buy or sell only at a specified price or better — execution is not guaranteed.
A limit order specifies the maximum price you'll pay (for buys) or minimum price you'll accept (for sells). The order rests in the book until either filled at your price (or better) or cancelled. Limit orders eliminate slippage but accept the risk of non-execution if the market moves away. Strongly preferred for entries at planned levels — especially in less-liquid instruments or fast markets.
Example
You place a limit buy order at ₹495 for a stock currently trading at ₹500. The order fills only if the stock drops to ₹495 or lower. If it rallies instead, the order never fills.
Related
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